Regional financial group, JMMB is heading back to the equities market to raise more capital through a public offering of Cumulative Redeemable Preference Shares.

Yesterday the board of JMMB Group Limited (JMMBGL) met and approved the public offering of the preference share. In a regulatory filing to the Jamaica Stock Exchange (JSE), where its shares are traded, JMMB did not disclose the amount of capital being sought from the public offering of preference shares but stated that “the offer is being made in Jamaica only, and the distribution of the prospectus shall only take place in Jamaica.”

The company advised that the details of the terms of the offer will be disclosed in the prospectus when issued. According to the regulatory filing, “JMMBGL further advised that subject to receipt of all regulatory approvals, it is anticipated that the offer will take place during the first quarter of 2021.”

Preference shares to be listed

It is intended that upon the successful conclusion of the Offer, JMMBGL will apply to the JSE for the preference shares to be listed on that exchange. JMMBGL last went to the equities market in November last year with an additional public offer (APO) of ordinary shares, which closed four days earlier than planned, on November 7 and was oversubscribed by 92.5%.

The company through the APO raised over $12.4 billion, making it the largest public offer of ordinary shares in Jamaica. Group CEO Keith Duncan said that the group was heartened by the overwhelming confidence that investors have shown in participating in the APO.

In its most recent published quarterly financials for July 2020, JMMB recorded after tax profits of $780 million, a 30 per cent decline when compared to the similar period last year. The decline was largely attributed to the slowdown of economic activities brought on by the COVID 19 pandemic.

COVID-impacted JMMBGL

The impact of COVID-19 on the regional financial group was not only the group’s profit but also negatively affected the company’s gains on securities trading, which down by 40% to $1.3 billion and foreign exchange earnings, which dipped by 29% to earn $527.8 million. However, the company reported that regardless of the fallout and current uncertainty, its financial performance remains stable.

For the period, JMMBGL also saw a 14 per cent year-on-year decline of revenues which totalled $5.0 billion for the period. At the end of the July quarter, the group’s asset base stood at $431.8 billion, up $31.57 billion or eight per cent relative to the start of the financial year.

This increase is attributable to a larger loan and investment portfolio.