Durrant Pate/Contributor

Omni Industries Limited on Tuesday (June 11) became the first company to be listed on the junior market of the Jamaica Stock Exchange (JSE) for 2024.

Strong demand from the investing public saw Omni’s initial public offer (IPO) of 500 million shares, priced at J$1 per share being oversubscribed within four business days and the general pool by nearly four times. The company’s stock commenced trading on June 11, closing the day at J$1.30, thereby triggering the JSE’s circuit breaker system, as the shares were being traded over 30 per cent of their starting value. 

In key remarks at the listing ceremony, JSE managing director Dr Marlene Street Forrest commended Omni for utilising the market to offer investors attractive investment opportunities, which she articulated has sparked renewed investor confidence and economic activity.

“Today, we celebrate the first listing on the junior market since the beginning of the year. Even in this difficult time, your offer was oversubscribed. Investors have positively responded, and I believe Omni is now well poised to enjoy more of the benefits that the market has to offer,” she said. 

IPO deemed historic company milestone

Thanking all who played a part in helping the company to realise this milestone, Omni Industries managing director, Patrick Kumst declared the successful IPO, “an achievement that reflects the trust and confidence investors have in our company and one that sets the stage for our next phase of growth and development”.

“Looking ahead, our strategic vision is clear. We plan to modernise our operations, enhance our production capacity, and expand our product offerings to new markets in the region,” he added.

Company chairman Von White pledged Omni’s commitment to good governance, transparency, and responsible leadership saying, “We are dedicated to maintaining the highest standards of corporate governance, with measures in place to protect and enhance shareholder interests. Our practices will ensure that we remain transparent, accountable, and focused on delivering consistent value to our investors.” 

NCB Capital Markets acted as its lead broker and only selling agent for the transaction with Alex Johnson, manager of origination and structuring, underscoring that the accomplishment is not just a turning point for Omni, but a significant milestone that would impact the entire equities capital market in Jamaica.  

According to him, “This combined IPO and offer for sale for J$500 million, stands as a testament to the strength and resilience of our financial markets and the unwavering confidence investors have in the future of Jamaican enterprises. Being the first of 2024, this equity IPO is a pivotal part of NCB Capital Markets’ commitment to revitalising the equities capital market space, and it exemplifies our dedication to providing capital market solutions for indigenous Jamaican companies like Omni.”

Proceeds from the offer will go towards upgrading existing machines, purchasing new machines for expansion, and injecting additional working capital into the company. Moving forward, Omni’s directors intend to pursue an annual dividend policy of up to 25 per cent of net profits available for distribution, subject to the periodic need for reinvestment in the company.

The IPO, which opened on May 17 and closed five days later, resulted in Omni successfully raising $500 million with a 65 per cent oversubscription. The new junior market company attracted over 2,686 new shareholders.