Friday 25 September, 2020

Alliance Financial seeks to launch IPO next month

Peter Chin (left), chairman and CEO, Alliance Financial Services Limited (AFSL) and Karl Townsend, chief country officer (Jamaica) of JMMB Group Limited’s capital markets unit shakes on the upcoming AFSL IPO, to be brokered by JMMB Securities Limited, subject to regulatory approval.

Peter Chin (left), chairman and CEO, Alliance Financial Services Limited (AFSL) and Karl Townsend, chief country officer (Jamaica) of JMMB Group Limited’s capital markets unit shakes on the upcoming AFSL IPO, to be brokered by JMMB Securities Limited, subject to regulatory approval.

JMMB Securities Limited has been engaged by Alliance Financial Services Limited (AFSL) to be the stockbroker and financial advisor for AFSL’s upcoming initial public offer (IPO) on the main market of the Jamaica Stock Exchange.

Karl Townsend, chief country officer (Jamaica) of JMMB Group Limited, made the announcement at Jamaica Stock Exchange Capital Markets Conference held at Jamaica Pegasus Hotel last week. (January 22).

The IPO will be subject to regulatory approval for the JSE.

“The draft prospectus for AFSL’s IPO has been submitted to the regulators and subject to regulatory approval, I expect that this IPO will be launched before the end of February 2020,” Townsend said.

The full prospectus will share the details of the offer, in addition to the company’s financial performance and strategic direction, for the benefit of the investing public.

AFSL is a family-owned company that is licensed by the Bank of Jamaica to provide cambio and remittance services since 2004. The company operates from headquarters at 7 Belmont Road, Kingston 5 and has four locations -  Liguanea, Kingston; Mandeville, Manchester; May Pen, Clarendon and Portmore, St Catherine. As a MoneyGram super-agent, its remittance business line is also supported by 68 sub-agents islandwide.

In sharing details about the 16-year-old company’s financial performance, Robert Chin, deputy chairman and vice president, reinforced the solid track record of the company; noting that, over the last five years, there has been consistent growth of its top line, evidenced by a 31.6 per cent compounded annual growth rate (CAGR) in revenue, coupled with a 54.6 per cent CAGR in net profit after tax.

The financial entity has also demonstrated the ability to provide significant shareholder value, with a return on average equity (ROAE) of 55 per cent, in 2019, which is among the highest when compared to listed companies in the financial industry, on the JSE. 

Over the last 18-month period (April 2018 to September 2019), AFSL’s cambio volumes represented approximately 8.3 per cent of the cambio market and three per cent of the entire foreign exchange market, comprising cambios and authorized dealers.

AFSL estimates that it accounts for approximately 30 per cent of all incoming remittances from MoneyGram International Inc.

JMMB Securities Limited was the arranger and broker for JMMB Group Limited’s additional public offer of shares (APO) in Jamaica and Trinidad and Tobago, which raised J$12.4 billion in November 2019 on the back of total subscriptions of J$19.6 billion, making it the largest public offer of ordinary shares in Jamaica’s history. 

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