Sagicor Select Funds looks to raise $4 billion in IPO for new fund
Kevin Donaldson, CEO, Sagicor Investments Jamaica (left), celebrates the listing of the Sagicor Financial Select Fund on the Jamaica Stock Exchange (JSE), during a ceremony on Thursday, August 8 at the JSE office in Kingston. He is joined by Sagicor Investments and Jamaica Stock Exchange team members.
Sagicor Select Funds Limited (SSFL), the passive Listed Equity Fund (LEF) company formed earlier this year, is set to launch another initial public offering (IPO) for its newly created fund – Sagicor Manufacturing and Distribution Select Fund.
The second of its kind to be created, this new fund represents the “Class C” ordinary shares of Sagicor Select Funds, which comprises securities for manufacturing and distribution companies currently trading on the Main and Junior Markets of the Jamaica Stock Exchange (JSE).
The company is seeking to raise $4 billion from this new IPO.
“Our aim at Sagicor Investments is to take Jamaicans to the next level in investing, in order to create, grow and preserve their wealth. Sagicor Manufacturing and Distribution Select Fund will be another path to wealth creation through ownership of 30 of the island’s largest and most profitable listed companies within the manufacturing and distribution sector,” Kevin Donaldson, CEO, Sagicor Investments said in a press release.
He noted that the Jamaican economy is at a unique point in its history, where the availability of appropriate investments vehicles, like the new Sagicor Select fund, will serve to support economic growth.
“A vibrant capital market means firms and individuals have appropriate avenues to grow their businesses as well as earn an attractive return. We encourage investors to get exposure to the manufacturing and distribution sector as it is an opportunity to own what you consume and use. This fund is just another step in enhancing Jamaica’s vibrant capital markets,” he said.
The IPO is set to be opened on November 20, 2019 and will offer for sale 2.5 billion “Class C” redeemable voting and participating ordinary shares at $1.00 per share, with a minimum share purchase of 1,000. SSFL has the right to upsize by an additional 1.5 billion in shares.
The entity has also reserved some 1.5 billion shares for Sagicor Group Jamaica’s Directors and Sagicor Investments clients with brokerage accounts as of October 31; this reserved pool is also available to Sagicor Group Jamaica employees at a discounted price of $0.98 per share.
Sagicor Investments is the lead arranger and lead broker for the IPO which is scheduled to close on December 4, 2019.
To better facilitate a seamless application process, the investment house will on November 12 open the Sagicor Investments IPO Hub at 6 Dumfries Road in New Kingston, where all corporate area applications can be submitted. Applications outside of the corporate area can be submitted at any Sagicor Investments locations island wide.
The investment house will also pause the opening of stock brokerage accounts during the IPO application period. Donaldson encouraged the public to open stock brokerage accounts early, to not miss “a great opportunity to earn your share of wealth through the Sagicor Manufacturing and Distribution Select fund”.
Sagicor Select Funds successfully listed its “Class B” ordinary shares on the JSE in August as the Sagicor Financial Select Fund, after raising J$6.3 billion and received overwhelming public support.