Sunday 26 January, 2020

Sagicor Select Funds successfully closes second IPO

 Kevin Donaldson, CEO, Sagicor Investments.

Kevin Donaldson, CEO, Sagicor Investments.

The initial public offer (IPO) for the Sagicor Manufacturing and Distribution Select Fund closed successfully on Wednesday.

The class C ordinary shares of the newly formed Sagicor Select Funds, the Sagicor Manufacturing and Distribution Select Fund, will own stocks in the most successful manufacturing and distribution companies on the main and junior markets of the Jamaica Stock Exchange (JSE). 

“We have reached our target and are grateful to the investing public for believing in the growth potential of Jamaica’s economy and our local entities. This is just another avenue through which Sagicor Investments enables Jamaicans to create, grow and preserve their wealth,” Kevin Donaldson, CEO, Sagicor Investments said. 

Referring to the recently listed Sagicor Financial Select Fund, which joined the main market of the JSE in August, Donaldson said: “This is the second of many innovations that we will bring to the market.” The first of its kind in Jamaica and the Caribbean, Sagicor Financial Select Fund currently tracks the financial index, introduced by the JSE earlier this year. 

In addition to tracking the JSE manufacturing and distribution index, the Sagicor Manufacturing and Distribution Select Fund allows investors further diversification in their portfolios and provides them with the added benefit of investing in a pool of assets from a range of manufacturing and distribution companies on the JSE. 

Donaldson underscored the importance of the fund and the benefits to the average Jamaican, noting that with one buy-in, Jamaicans can own their share of wealth in some of the island’s top-performing listed manufacturing and distribution companies. 

He positioned the Sagicor Manufacturing and Distribution Select Fund as a means through which investors can transform their financial security and earn from companies they support daily.

“With this fund, every time you take up a product in the supermarket, you can say, ‘I own a piece of that’, he noted. 

There are currently 30 manufacturing and distribution companies’ that make up the JSE manufacturing and distribution index which the new Sagicor Select Fund aims to track; some 55 per cent of which, are from the food and beverage industry.

The top companies in the fund include Wisynco Group Limited, Caribbean Cement Company, Grace Kennedy Limited, Jamaica Broilers Group, Carreras Limited, Seprod Limited, Jamaica Producers Limited, Lasco Manufacturing and Lasco Distributors. 

Touting that the industries are poised for growth, Donaldson shared that the manufacturing and distribution industries accounted for 26 per cent of the country’s gross domestic product in 2018. He added that the industries have grown exponentially over the past five years and noted his anticipation for continued growth, hence the creation of this fund to mirror the manufacturing and distribution Index.  

Once listed, the Sagicor Manufacturing and Distribution Select Fund will be the second Listed Equity Fund on the stock market, following the Sagicor Financial Select Fund. 

The IPO opened on November 20 and sought to raise $2.5 billion with the potential to upside to $4 billion, with each share priced at $1. A minimum purchase price of 1,000 shares was required.
Sagicor Investments was the lead broker and lead arranger for the IPO.
 

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