JAM | Feb 24, 2022

Edufocal: Another Jamaican private company going public

/ Our Today

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Edufocal IPO set to open next week, closing on March 17, 2022

Co-Founder and CEO of EduFocal, Gordon Swaby.

Jamaican private online learning institution, Edufocal is going public through an initial public offer (IPO) of shares, set to open next Thursday, March 3

The Gordon Swaby-founded and led company is seeking to raise just under $130 million through the subscription of  129,689,219 ordinary shares on offer in the IPO, priced at $1 per share. However, the general public will only get to buy 80,499,272 million shares, which represents 62 per cent of the IPO, which has been allocated in the non-reserved pool of shares.

The remaining portion is listed in the reserved pool comprising 35,947,717 million shares or 28 per cent of the IPO will go to key strategic partners and the balance of 13,242,230 or 10 per cent of the IPO going to Roots Financial Group Limited as the lender’s option.

Both Roots and Edufocal have agreed that the former will exercised its option under the loan agreement dated March 9, 2021 to convert  $13.24 million of debt owed by EduFocal into ordinary shares at the IPO, price of J$1.00 per share. It is the intention of Edufocal to apply to the Board of the Jamaica Stock Exchange (JSE) for the whole of the issued ordinary share capital of the company to be listed on its Junior Market.

However, the application for admission is dependent upon  Edufocal ’s ability to raise J$100 million as a result of the IPO and the company meeting the criteria for admission.


If successful all net proceeds (after payment of transaction costs) will be used to repay short term loans and invest in product development as well as for expansion. The current proposed initiatives for expansion including improving platform efficiency, developing a range of quality new products and features, and expansion into new markets including the North American market.

Edufocal estimates that the transaction costs for the IPO will amount to $12 million (inclusive of brokerage fees, legal fees, auditor’s and accounting fees, registrar fees, listing fees and General Consumption Tax) while approximately $42 million will be used towards the repayment of short-term debt and approximately J$62.44 million will be used towards expansion in new markets including by way of acquisition opportunities.

Among the company’ most recent initiatives is the formation of the EduFocal Academy, which was launched in September 2020. It entails a complete online school experience where we offer a full-day online learning programme, Monday through Friday from 8:15 a.m. to 2:30 p.m.

Gordon Swaby, founder of Edufocal.

In addition to full days of online classes, the Academy also offers additional resources designed specifically to meet the developmental needs of our students, such as unlimited access to our homework centre, where students and parents can connect live with teachers after classes for additional support with problem topics or just to check in on their child’s progress.

EduFocal is still in the growth stage as it continues to expand and develop its platform and services. However, the company’s revenue streams are recurring in nature and the Board expects that it will perennially have excess profits over and above its reinvestment needs.

Generous dividend policy

Based on that expectation the company has adopted a dividend policy targeting a pay-out not exceeding 25% of net profits after tax. The dividend policy is subject to the Company’s reinvestment needs including investment its platform and the availability of sufficient distributable reserves for each financial year.


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