Dolla Financial, founded by Kadeen Mairs, is now the largest micro finance company in Jamaica by market capitalisation.
As of today (June 21), Dolla traded at an average of J$3.52 per share, taking it to a market capitalisation of J$8.8 billion.
Access Financial Services, formed by Marcus James in 2000 and the first company to list on the Junior Market of the Jamaica Stock Exchange in 2009, was hailed as the most successful micro finance operator in Jamaica and today has a market capitalisation of $J5.47 billion.
There has been a delay in Access’ current audited financial statements but its last published unaudited results for the nine months ended December 31, 2021 recorded a consolidated net profit after tax of J$265 million compared to J$128 million for the similar period in 2020. Total assets came to J$5.81 billion.
Earnings have declined by 25.7 per cent year over year for the past five years but the company has managed to turn its performance around. It has withdrawn from micro financing and is now focused on funding medium-sized enterprises.
Dolla Financial has been well received by both Jamaicans at large and investors on the JSE. The lending arm began in 2014 with Mairs aiming to give unbanked and underbanked Jamaicans access to capital to grow their small businesses.
Last year, Dolla raised $425 million.
This year, when it sought to raise J$500 million through its IPO. Dolla Financial Services’ equity raise was oversubscribed by more than J$4 .7 billion on its first day (May 27)), signalling significant faith in the microfinance company headed by Mairs.
Last week, Dolla Financial Services listed on the JSE.
The company offered shares of 212,500,000 to the general public, while the remaining 287,500,000 shares were held for reserve share applicants. A total of 125 million shares were said to be held by the corporate applicant pool, which comprises directors, employees, Tania Waldron-Gooden (company mentor), and affiliates such as Dequity Capital Management and FirstRock Private Equity.
In addition, 162,500,000 shares were set aside for the key partners’ reserve pool, which consists of customers and suppliers deemed critical to the company’s long-term growth, as well as lead broker Victoria Mutual Wealth Management Limited (VMWM) and its managed portfolios.
Speaking with Our Today, Mairs declared: “People are buying into the future value of the company and it shows the confidence in the expansion and acquisition plans for the near future.
“We aim to be a true regional player in the microfinance space.”
Yesterday the stock went up by 30 per cent. Today it went up by 8.5 per cent.
Dolla is proving to be a hot buy.