Durrant Pate/Contributor

IEC Energy Company, the majority shareholder of Innovative Energy Group, has reduced its equity position in the Jamaican-listed company, which trades as ENERGY, by selling shares on the open market.

IEC executed multiple share-sale transactions on November 21 through a licensed broker-dealer, which included a significant block trade along with additional smaller-volume sales completed earlier in the trading day. These transactions follow a series of smaller transactions executed over the past two weeks, priced between J$1.20 and J$1.00. They were made as part of ENERGY’s commitment to maintaining the public float requirements under Rule 402B(i) of the JSE main market rules, so that at least 20 per cent of issued share capital is held by the public.

As a result of this sale of shares on the open market, Innovative Energy now meets the requirements for a minimum public free float of 20 per cent of the issued ordinary share capital. The move was executed in accordance with the public free-float requirements under Rule 402B(i) and the disclosure obligations set out in Rule 402C of the JSE main market rules.

Some 144,039 shares exchanged hands on Friday (November 28), with the share price going down 10 cents to $1.03, representing an 8.85 per cent decline. 

Up to July this year, IEC Energy held 1,104,800,000 shares, representing an 83.931 per cent ownership stake of ENERGY’s issued share capital. At that point, ENERGY was not in breach of Rule 402B(i) of the main market rules for purposes of the imposition of any penalty under Rule 402C(ii) (including suspension, fines, or delisting), as ENERGY qualifies for the exception noted in Rule 402C(iii) of the main market rules on the following bases:

1.⁠ ⁠ENERGY has maintained the minimum requirement for 100 shareholders;

2.⁠ ⁠The public float is presently less than 20 per cent; and

3.⁠ ⁠ENERGY’s average traded volume exceeds the two per cent threshold over a 36-month period.

Notwithstanding its qualification for the exception, IEC Energy notified the JSE and the investing public of its intention to restore the 20 per cent public float. Accordingly, the company offered for sale 51,740,704 ordinary shares, representing approximately 3.931 per cent of ENERGY’s issued share capital.