Victoria Mutual Investments to raise over $600 million from IPO
(From left to right: VM Group Chairman Michael McMorris, VM Group CEO Courtney Campbell, and VM Group's Chief Investment Officer Devon Barrett.
Victoria Mutual Investments Limited (VMIL), a subsidiary of the Victoria Mutual Building Society (VMBS), is seeking to raise just under $700 Million from an Initial Public Offer (IPO) of Ordinary Shares.
VMIL will invite applications for a little over 300 million ordinary shares at a cost of $2.45 per share.
The offer opens on Monday, December 11, at 9:00 AM and close on Monday, December 18, at 4:00 PM.
Proceeds from the public offer will be used to build the company’s capital base to enable it to grow its business of providing financing solutions and to capitalise on new business opportunities.
“The board of Victoria Mutual Building Society has approved an Initial Public Offer of 20 per cent of Equity in the subsidiary, Victoria Mutual Investments Limited. Our intention is to list this subsidiary on the main market of the Jamaica Stock Exchange (JSE) by the end of 2017,” said Courtney Campbell, VM Group President and CEO.
According to the VM Group’s Chief Investment Officer, Devon Barrett, this invitation has come at an opportune time.
“We have identified the need for more innovative and creative financing solutions for small and medium-sized entities (SMEs). The demand is approximately $20 billion per year and we plan to use the proceeds of this IPO to provide financing solutions, in either debt or equity. So, we are committing at least $1 billion of financing to SMEs in 2018.”
He further stated that the offer is another opportunity for the institution to uphold its mission of financial Inclusion, as it allows key stakeholders an opportunity to participate in the ownership of the company and the resultant benefits.
Campbell described the public offer as historic.
“With respect to the VM Group’s strategic goal of becoming a modern mutual, this IPO is historic in that this is the first time that a mutual financial institution in Jamaica will list a subsidiary on the Jamaica Stock Exchange. In addition, as part of our commitment to remain at the forefront of advancing Financial Independence for everyone, we have designed the offer to create value for our Members and clients," said Campbell.
Just over 225 million ordinary shares will be initially reserved for priority applications to be allocated between the VM Group Employees at a price of $2.08, and existing Members of the VM Group at a price of $2.33 per Share. The offer is limited to a minimum purchase of 5000 shares.
Victoria Mutual Wealth Management Limited (VM Wealth) will use its own expertise for the benefit of its parent company VMIL and act as the Lead Broker in the IPO.