Following its successful Initial Public Offer (IPO) of shares, which was closed early due to an oversubscription, One Great Studio Company Limited (1GS) has made its allotment of shares.

The company has outlined the basis of allotment of the 338,627,439 new ordinary shares in the IPO in which 1GS team members and strategic partners will get their full allotment of shares subscribed.

Regarding the general public pool, which was over-subscribed, it has been determined that applicants will be allotted the first 20,000 new ordinary shares applied for and approximately 34.088 per cent of the balance of the amount applied for. Applicants, who applied for 20,000 shares or less will receive their full allotment.

Refund of offers

Applicants whose applications were only accepted in part will be refunded the balance of their subscription monies as per the IPO Prospectus, dated August 11, 2023. 1GS will now proceed to apply for a listing of its ordinary shares on the Junior Market of the Jamaica Stock Exchange.

The One Great Studio team and Barita Investments Limited, the arranger and lead broker, have thanked all applicants for their support and confidence, making the first IPO of the year a success. The one dollar per share IPO, which sought to raise J$338.6 million, was closed last Tuesday (August 29, 2023), a day after it was opened on Monday, August 28, 2023.

One Great Studio is expected to grow revenues and net profit in the near-to -medium term as it continues to incorporate the search engine optimisation (SEO) business line within its existing business model, and benefit from increased brand visibility from listing.

Given the positive outlook for the industry and company as well as the fact that the stock offers a potential total return of 19.3 per cent, which is above the cost of equity of 16.67 per cent, NCB Capital Market gave a buy recommendation.