Second block of shares purchased on the open market

Durrant Pate/Contributor    

The shares buyback plan initiated earlier this month by listed company, First Rock Real Estate Investments is gathering momentum.

Having purchased 100,000 shares on the open market on September 7, the real estate investment and development company has purchased a second block of shares on the open market. First Rock purchased of a total of 250,000 of its shares on the open market during the period September 15 to September 19.

The company has also advised of the purchase of 40,000 shares on September 15, 2022. The share buyback exercise was delayed for six months when it was supposed to commence during the first quarter of this year but instead became available on September 1, 2022.

The open market share buyback exercise should not exceed 10 per cent of the company’s capital, which amounts to US$3.4 million, as at March 30, 2022.

BUYBACK TO BE USED AS A TOOL FOR FIRST ROCK REAL ESTATE INVESTMENTS

The shares buyback 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”.

Having been trading below its initial public offer price of J$16.67 and US$0.12 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.

In trading on Friday (September 23), First Rock’s share price advanced by J$1.16 with just under 90,000 units exchanging hands closing at J$12.66 per share.