Durant Pate/Contributor

Dequity Capital is looking to make waves with its latest initial public offer (IPO) for J$657.5 million in fresh capital.

The Kadeen Mairs-led company is making an offer for 657.5 million shares, representing 394.5 million common shares to the general public at J$1.00 per common share and 263 million reserved shares being offered at J$1.00 for strategic investors. If any of the reserved shares in any category are not subscribed, they will become available for subscription by the general public.

The IPO opens on November 27 and will close on December 18, and is being arranged by VM Wealth Management Limited.

Dequity Capital, a pure equity holding company undertaking investing activities with its core focus on creating a diversified portfolio with investments in multiple market segments, including financial services, health care, real estate, insurance brokerage and digital print and media, intends to make an application to the Jamaica Stock Exchange (JSE) to have the common shares listed on the JSE main market. 

The application for listing is dependent on (i) at least J$500 million being raised pursuant to the invitation and (ii) Dequity meeting the criteria for admission.

Use of proceeds

Proceeds raised from the IPO will be strategically deployed to liquidate existing debt, cover the costs associated with the offer and listing and provide some capital for new investment opportunities that align with our core focus.

It is estimated that the invitation and listing expenses will not exceed J$30 million (inclusive of lead brokerage and arranger fees, legal fees, accountant’s fees, Registrar’s fees, filing fees, stamp duty and transfer tax, initial listing fees, marketing expenses, and inclusive of GCT where applicable.

Dequity intends to pay a dividend of at least 60 per cent of the free cash flow of the company derived from the applicable audited or management accounts of the company. The board of directors, at its sole discretion, may alter the dividend payout ratio from the stipulated target as the need arises. Free cash flow represents the cash that Dequity generates after accounting for cash outflows to support operations and maintain its capital assets. 

This is calculated as cash flow from operations adjusted for the purchase of investments that are separately funded.

Dequity Capital’s focus is on identifying and investing in promising small- to medium-sized businesses with the aim of leveraging its expertise, capital and disciplined investment approach to generate long-term value creation for shareholders by nurturing and growing its portfolio companies.

Dequity, which is a major shareholder in listed micro-lender, Dolla Financial, has built a diversified portfolio with exposure to financial services, healthcare, real estate, insurance, digital print and media, and telemedicine. The company plays an active role in supporting its portfolio companies by offering access to growth capital, strengthening governance structures, and providing strategic guidance through its appointed manager, Dequity Capital Fund Managers Limited. 

This hands-on, partnership-driven approach is designed to enhance operational efficiency, unlock new growth opportunities, and deliver sustainable shareholder value over time. Investments and day-to-day operations are managed by an affiliated company, Dequity Capital Fund Managers Limited, engaged under a management agreement.

Although Dequity has not yet completed an investment exit, its monetisation strategy includes public listings, strategic trade sales, and secondary market transactions.