Friday 29 May, 2020

Proven’s additional share offer opens March 11

Proven Investments chairman Hugh Hart said the capital is being sought to execute the company's business strategies.

Proven Investments chairman Hugh Hart said the capital is being sought to execute the company's business strategies.

Private equity firm Investment firm Proven Investments Limited (PIL), which has issued a prospectus for additional common shares says it intends to grow investments in real estate development projects.

It is also eyeing investments in the regional acquisition of financial services sector.

Proven is listed on both the Jamaican dollar and USD markets of the Jamaica Stock Exchange (JSE).

Proven is making to the public an offer of new ordinary shares priced at $38.64 or US$0.28 each in the offer, which will open on March 11 and close on March 31.

The invitation is underwritten by Sagicor Investments Jamaica Limited, whose underwriting commitment is capped at US$50 million.

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The company has invited subscriptions from the public in Jamaica of 267,857,143 new ordinary shares at the subscription price of US$0.28 or J$38.64.

The invitation will be initially in respect of 178,571,429 but directors may elect to upsize the number of by an additional 89,285,714 shares.

Company chairman Hugh Hart said in the prospectus that the timing is right for expansion.

Additional capital, he noted was being sought “to deploy in the execution of our business strategies.”

The chairman said the company intended to use the net proceeds of the invitation “to strengthen our capital base and enable us to continue to pursue and execute those investment opportunities that we determine offer the best prospects of meeting our investment targets and satisfy all of our investment criteria.”

He noted that while the company is likely to seek investments in its core areas of expertise, such as financial services, the company will also consider investments in the real sector.

PIL started in 2010 when the company raised US$20 million by way of a private placement of ordinary shares, and later that year, an additional US$9.7 million by a rights issue of additional ordinary shares.

In July 2011, ordinary shares were listed by introduction as the first listed ordinary shares on the USD Market of the JSE.

The company subsequently raised additional funding through rights issues of ordinary shares, preference share issues, and debt issues.

PIL now holds investments in Jamaica, the Cayman Islands, St Lucia, including subsidiaries and associated companies.

It generated net profit attributable to shareholders of US$6.97 million as at the last financial year ending March 31, 2019.

PIL’s subsidiaries include private equity arm Proven Wealth Limited (PWL) and a stake in microfinance firm Access Financial Services Limited (AFSL) in which it owns 24.72 per cent.

PIL also currently owns 75 per cent equity of BOSLIL Bank Limited. It also acquired a 100 per cent interest in International Financial Planning Limited in IFP in August 2018.  IFP is a licensed securities dealer with offices in Cayman, Bermuda and the British Virgin Islands.

Proven’s real estate investment trust operates three rental income properties and eight developmental sales projects, all at various stages of the development cycle.

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