Friday 30 October, 2020

Mailpac to list Wednesday, strong demand anticipated

Mailpac executive chairman, Khary Robinson

Mailpac executive chairman, Khary Robinson

E-commerce business Mailpac Group will list on the junior market of the Jamaica Stock Exchange (JSE) on Wednesday, giving investors an opportunity to trade the highly anticipated stock.

The stock will list at $1 but demand is expected to be strong. That is because most minority investors did not get their fully requested allotment in the initial public offering.

“Should you wish to acquire additional shares, you may apply via the secondary market when the stock lists on the JSE on to December 4, 2019,” said lead broker NCB Capital Markets to clients on Tuesday.

Reserved shares were fully allocated, while the general public received the first 20,000 units fully allocated then  4.09 per cent additional thereafter.

Mailpac sold 20 per cent of the company in its initial public offering and raised $495 million. The company will start trading with a market valuation of about $2.5 billion on opening bell. The offer opened on November 22 and closed that day.

In its prospectus, Mailpac noted that most of its funds raised would go towards debt repayment to its parent company, Norbrook Equity Partners. The remainder will be used by Mailpac for general corporate purposes, including working capital, operating expenses and capital expenditure.

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