Saturday 28 November, 2020

Proven targets US$50 million from additional share offer

Christopher Williams (L), President and CEO PROVEN Management Limited (PROVEN) and Kevin Donaldson, CEO, Sagicor Investments Limited; used a customary handshake to indicate a signed agreement between the companies to proceed with plans for the upcoming PROVEN Additional Public Offer (APO).

Christopher Williams (L), President and CEO PROVEN Management Limited (PROVEN) and Kevin Donaldson, CEO, Sagicor Investments Limited; used a customary handshake to indicate a signed agreement between the companies to proceed with plans for the upcoming PROVEN Additional Public Offer (APO).

Proven Investments Limited has added US$20 million to its initial US$30 million additional public offering or APO target, in what the company said, was a response market demand.

President and CEO of Proven Management Limited, Christopher Williams first indicated plans to invite the public to participate in an Additional Public Offer (APO) of its ordinary shares in January.

Williams did not specifically state what the US$50 million ($7 billion) raise will be used for but noted that the funds will assist the Proven Investments in ensuring that it has sufficient access to equity to support the short to medium-term strategic focus which includes acquisitions.  

The offer is set to open at the end of this month.

Sagicor Investments Jamaica Limited will co-arrange and fully underwrite the offer.

“I welcome all your interest in participating in what will actually be the first time Proven has made an unrestricted offering of ordinary shares to the public.   While its ordinary shares have been listed on the JSE since July 2011, Proven has never before conducted an offering of ordinary shares that is open to participation by every member of the investing public in Jamaica,” said Williams.

Proven, which started operating in 2010, today has a footprint in the Cayman Islands, St Lucia and holds a substantial portfolio of investments in Jamaica.

From the US$50 million raise, Proven could be looking to secure clients in a fourth regional country and buy commercial real estate in Jamaica.

Its latest real estate investment in Jamaica is the build-out of 99 apartments consisting of 51 studios, 30 one-bedroom units and 18 two-bedroom units. The project, slated for Braemar Avenue in New Kingston, is to be called VIA and will feature a 10-storey complex that offers a sky pool, gym, café and other services.

Once launched in July, the starting prices for the units are $21 million for studios, $27 million for one-bedrooms, $40 million for two-bedrooms, and $45 million for penthouse units. Some 85 per cent of the units are already sold out.

A summary of Proven’s unaudited statements for the nine months ended December 2019 show that net profit attributable to owners of the company (NPAO) for the period amounted to US$26.45 million, while NPAO adjusted for the extraordinary gain and associated charges amounted to US$8.47 million.

This is a 43.50 per cent increase in core earnings from the US$5.90 million earned in the same period last year.

The investment firm listed on the Jamaica Stock Exchange in July 2011. 

 

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