After months of rumours, micro-financing company Dolla Financial Services has confirmed that efforts are in place to take the company public.

The company is this month seeking to raise J$500 million from stock market investors, the maximum equity raise allowed for new listings on the Junior Market.

The initial public offer, which has been priced at J$1.00 per share, will open at 9:00 am tomorrow (May 27) and is scheduled to close at 4:30 pm on June 10.

The company’s invitation for 500,000,000 ordinary shares at J$1.00 per share, includes 250,000,000 newly issued ordinary shares and a sale of 250,000,000 existing ordinary shares by selling shareholders.

According to the company’s prospectus, the equity earned from the sale will be used to reduce debt by selling shareholders as well as to fund the company’s planned regional expansion.

If successful, the company will list on the Junior Market of the Jamaica Stock Exchange.

At present, Dolla Financial Services boasts eight branches across Jamaica in Fairview, Mandeville, Discovery Bay, Savanna-la-Mar, Junction, Lucea, Barnett Street and Kingston, as well as one branch in Georgetown, Guyana.

Dolla’s journey started in 2014 with an offering of cambio and remittance services, before deciding in 2016 to solely focus all resources on offering micro financing solutions and discontinue its other services.

Since its inception, the company has disbursed over J$2.30 billion in loans and generated profit before taxes attributable to shareholders of J$167.80 million as of the end of the 2021 financial year ending December 31, 2021.

The company has informed that, if the ordinary shares are admitted to the Junior Market, a dividend policy that projects an annual dividend of up to 50 per cent of net profits available for distribution will be issued to shareholders.

For more information about Dolla Financial Services and its upcoming initial public offer, click here.