Business
JM | Nov 19, 2021

Dolla Financial raises J$425m in 2021 amid rumours of impending IPO

/ Our Today

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Jamaican micro-financing company Dolla Financial Services last June raised $225 million in a private placement brokered by GK capital.

Earlier this month, the company raised a further $200 million in a private debt raise with an institutional investor, bringing its 2021 capital raise to $425 million.

“It’s important to continue to raise funding to further on-lend,” said Dolla Financial Group CEO Kadeen Mairs.

“There is a constant need in the market for the ‘every day man’ to have access to funding to grow their businesses at their pace and not at the pace of the lender.”

“We have been tapping the capital markets over the years to raise debt, so looking at a public offering to raise equity doesn’t sound like a bad idea.”

Dolla Financial Group CEO Kadeen Mairs

He further stated that “in order to help the economy recover and adjust to living alongside COVID-19, it is important that we fuel the rejuvenation of micro, small and medium enterprises who are the backbone of our economy”.

This strategic move by the company was undertaken as it saw consistent growth in the company’s loan portfolio which Mairs estimates to be upwards of $750 million by the end of 2021. When questioned about rumours of the company listing on the Jamaica Stock Exchange, Mairs said he could not comment on that but disclosed that Dolla recently engaged VM Wealth as its financial advisors.

“We have been tapping the capital markets over the years to raise debt, so looking at a public offering to raise equity doesn’t sound like a bad idea,” he said.

Dolla Financial Group CEO Kadeen Mairs.

Dolla, which is owned by Dequity Capital and First Rock Private Equity, generates the majority of its income from loans to clients within the tourism and business process outsourcing industries, but is looking beyond those sectors for organic growth, through three new products – Medi-pay, which offer clients loan for cosmetic surgery, including body contouring procedures, dental braces and retainer; Four-pay, a buy now, pay later facility which offers customers
shopping online to pay for the item in four monthly instalments; and ‘One and Move’, which is directly targeted at taxi operators.

“We are projecting at the end of this financial year to double our loan book from both organic growth and acquisition,” Mairs said.

To date, the company has eight branches in Jamaica, with close to 3,000 clients across at locations in Jamaica and Guyana.

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