Saturday 24 October, 2020

NROCC nets over $3 billion for TransJamaican Highway preference shares

File photo shows the Portmore Toll Plaza of the East-West leg of Highway 2000.

File photo shows the Portmore Toll Plaza of the East-West leg of Highway 2000.

National Road Operating and Constructing Company (NROCC) has sold preference shares held in TransJamaican Highway Limited at a significant profit.

NROCC is a 100 per cent owned-government entity and grantor of the concession to operate the East-West toll roads

The company, in January 2020, was issued $2.7 billion in redeemable cumulative preference shares by TranJamaican Highway Limited.The issue replaced previously issued preference shares that were also held by NROCC.

Herbert Hall, Vice President and Head of Investment Banking, Jamaica and Northern Caribbean at NCB Capital Markets told Loop News that on July 31, 2020 NROCC sold 100 per cent of its preference shares via a private placement and in the process raised $3.59 billion.

Hall outlined that NROCC, the selling shareholder, will keep all of the proceeds from the raise and “they will decide along with the Ministry of Finance what they do with it.”

The investment manager said that the offer attracted interest of just over $3.81 billion from 48 investors representing a subscription of 106 per cent of the offer amount.

The listing of the shares on JSE’s main market, set for Wednesday, September 30, 2020 is being done by way of a listing by introduction since this was not a public offer for sale or initial public offering.

“The offer that was arranged by NCBCM was a fully digital offer that allowed investors to participate in the transaction without having to leave the comfort and safety of their homes.”

“All customers with a brokerage account were able to participate using NCBCM’s GoIPO platform.”

Get the latest local and international news straight to your mobile phone for free:

  

Comments