Buyback exercise will commence on September 1, 2022

Durrant Pate/Contributor

First Rock Real Estate Investments has delayed its shares buy-back exercise, which was supposed to commence in the first quarter of this year for at least six months.

The ordinary share buyback exercise will instead commence on September 1, 2022. In an advisory to the Jamaica Stock Exchange, where its shares are traded, First Rock, advised of the delay in the buy-back exercise, first announced in March this year.

First Rock, which is in the business of real estate equity and development will be buying back the shares on the open market. The open market share buyback exercise should not to exceed 10 per cent of the company’s capital, which amounts to US$3.4 million, as at March 30, 2022.

The shares buy-back exercise “is intended to be used as a tool for First Rock Real Estate Investments Limited to unlock shareholder value over time and will be funded by cash on the company’s balance sheet. The execution of the shares buy back initiative will be communicated to the market in due course”.

Shares trading below IPO price

Having been trading below its initial public offer price of J$16.67 two years ago, First Rock is seeking to unlock value by returning cash to shareholders, who want to exit the investment. In the converse, with remaining shareholders First Rock can increase earnings per share, all else being equal.

At last trading yesterday (July 18), First Rock’s share price slipped further in value, losing J$0.09 to end the trading day at an even J$12 with 9,276 shares exchanging hands.