Alliance Financial Services has suspended its Initial Public Offer (IPO) of some 1.25 billion shares, which was slated to go on the market today.

The IPO is now slated to open one month later on January 28, 2021, with the January 11, 2021 closing date being extended to a new date to be announced. In a statement released by the Jamaica Stock Exchange, Alliance Financial reports that subsequent to the prospectus for the IPO being published on December 21, 2020, the directors of the selling shareholders were made aware of a certain matter.

Reason for the suspension

This matter the statement explained relates to a separate entity in which the directors of the selling shareholders are connected parties. “The Selling Shareholders have deemed it prudent to suspend the Offer until January 28, 2021 and anticipate that the matter will be resolved shortly,” a portion of the statement read.

The company expressed its appreciation and said it is “heartened by the overwhelming interest we have received thus far and regret any inconvenience that this may cause to our stakeholders, lead broker and the general public. We look forward to your continued support when we resume activities related to this most exciting milestone for our company.”

The IPO will feature a key partner reserve pool, ensuring Alliance Financial employees, clients and other longstanding partners have preferred access to becoming part owners in the company. 

Just under $2 billion to be raised from the IPO

Alliance Financial expects to raise just under $2 billion from the public offer of shares in the company. The IPO, which is being arranged and offered by JMMB, is priced at $1.59 per share.

Alliance Finance’s main product lines are foreign exchange services, remittances and more recently, card services, which all represent critical needs in the local economy. In making out a case for its APO, Alliance Financial reports that 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, Alliance Financial acquired the card services portfolio of Alliance Payment Services Ltd. (APSL) and became a principal member of the MasterCard network.

Alliance Financial larger issuer of prepaid MasterCards

Alliance Financial 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”.

Alliance Financial is a longstanding primary agent for MoneyGram in Jamaica, a major player in the cambio industry and a principal member of MasterCard.