Alliance Financial Services Limited (AFSL) has announced an initial public offering (IPO) for just under J$2 billion in shares to the public.
The IPO, which is being arranged and offered by JMMB, will open on December 28 and close on January 11, 2021.
At inception, the vision of the company’s founders – Robert and Peter Chin – was to establish a business that would consistently offer superior and personalised financial services, while creating a longlasting and mutually beneficial relationship with its customers. Twenty four years after opening their doors, the shareholders are inviting Jamaicans to take part in the successful enterprise through its IPO.
AFSL’s main product lines are foreign exchange services, remittances and, more recently, card services, which all represent critical needs in the local economy. While some industries struggled to stay afloat this year, BOJ data reveals that net remittance inflows to Jamaica during the peak of the pandemic (between April 2020 and September 2020) increased by 30 per cent year over year.
AFSL said its “proven expertise and ability to continually reinvent and reimagine itself to better serve its corporate, institutional and retail clients, augurs well for sustained success and increasing shareholder value”.
Amid the COVID-19 crisis, the company acquired the card services portfolio of Alliance Payment Services Ltd. (APSL) and became a principal member of the MasterCard network. AFSL is now the largest issuer of prepaid MasterCards locally, primarily brought about through several lucrative white labeling partnerships with corporations islandwide. It is the first provider of a direct-to-card remittance solution (Alliance ePay MasterCard), which has placed the company in a stronger competitive position in the remittance market.
The company said its performance to date “is testament to the business acumen and prudence of an experienced team that is committed to the company’s success”.
The offer will feature a key partner reserve pool, ensuring AFSL employees, clients and other longstanding partners have preferred access to becoming part owners in the company.
When asked about the significance of this allocation, Robert Chin, deputy chairman and vice president, Alliance Financial, said: “This share allocation will ensure that individual and smaller shareholders will have an opportunity to own a stake in the company that they helped to build.”
He added: “This will safeguard the diversity in the ownership of the business going forward. Our success is due to the people who fervently supported our vision from within, as team members, and our loyal customers and clients who have allowed us to partner with them over the last two decades. Peter and I are happy to invite them to enter into a new phase of our relationship, as shareholders.”
AFSL is a longstanding primary agent for MoneyGram in Jamaica, a major player in the cambio industry and a principal member of MasterCard. The selling shareholders invite the public to purchase up to 1,252,294,335 shares, priced at J$1.59 per share, subject to the terms and conditions of the company’s published prospectus.