Business
JM | Oct 4, 2022

PBS preference share offer surpasses expectations

/ Our Today

administrator

Company officially lists shares on JSE main market

Andre Gooden, group business development manager of the Jamaica Stock Exchange, commended the stakeholders involved in bringing the offer to market.

Productive Business Solutions Limited (PBS) has raised over US$18 million and some J$500 million from its two-tranche preference share offer, making it the largest initial public offering on the Jamaica Stock Exchange (JSE) to date in 2022.

The offer, which was upsized and oversubscribed, opened on August 12, 2022 and closed on September 9, 2022.

It invited subscription for one million perpetual cumulative redeemable preference shares in US dollars at a fixed rate of 9.25 per cent, and another 150,000 perpetual cumulative redeemable preference shares in Jamaican dollars at a fixed rate of 10.50 per cent.

A perpetual cumulative redeemable preference share is similar to an equity issuance in that there is no maturity date. Additionally, a perpetual cumulative redeemable preference share typically offers predictable dividends.

PB Scott, chairman of PBS Group.

The 9.25 per cent and 10.50 per cent preference shares are now officially listed on the main market of the JSE  — also making it the first company to list on the JSE main market and the US equities market in 2022 by way of an IPO.

Speaking at the listing ceremony last Friday (September 30), Andre Gooden, group business development manager of JSE, commended the stakeholders involved in bringing the offer to market.

Gooden indicated that PBS received US$18.7 million from 597 applications for the 9.25 per cent preference share offer. This was valued at US$15 million, making it the largest initial public offering to date in 2022.

Nicholas Scott, chief investment officer of the Musson Group of Companies, places the PBS preference share name plate on the listing board at the Jamaica Stock Exchange on Friday (September 30). From left are: PBS Group Directors Jose Misrahi, Blondell Walker and PB Scott.

The company also received $582.3 million from 531 applications for the 10.50 per cent preference share offer, which was valued at $500 million.

“The applicants in the reserve pools were allocated 100 per cent of what they applied for while the applicants in the general pool were allotted on a pro rata basis,” Gooden explained.

This success is attributed in part to the lead broker JMMB Securities Limited. PBS is the first company that JMMB Securities Limited brought to list shares on the main market under US equities.

“… And we’re hoping that this won’t be the last,” Gooden continued.

Andrae Tulloch (right), chief regulatory officer of the Jamaica Stock Exchange, presents PB Scott, chairman of PBS Group, with the JSE’s Main Market Rule Book at the official listing ceremony on Friday (September 30).

“For those issuers out there, who are still wondering whether it’s a good time to come to market, just look at what happened to PBS and the success of this offer.”

The proceeds of the offer will support PBS’ strategic growth objectives and opportunities, including acquisitions and expansions into new territories, as the company continues to be bullish on its growth momentum to solidify its position as the region’s leading enterprise information technology company.

For its second quarter ended June 30, 2022, PBS recorded significant increases in revenue, profit after tax, and earnings before interest, taxes, depreciation, and amortisation (EBITDA).

During the period under review, net profit amounted to US$1.7 million, revenues were US$91.2 million, while EBITDA was US$11.8 million.

“We make things happen and we want to see the business continue to grow and develop because it is a work in progress. PBS has a future that is far beyond even what we can imagine today or what it is today.”

PB Scott, chairman of PBS

Also speaking at the listing ceremony, chairman of PBS, PB Scott said: “We take it very seriously when investors invest in PBS. We don’t take that for granted and we want to thank everyone who subscribed to this offer.

“We make things happen and we want to see the business continue to grow and develop because it is a work in progress. PBS has a future that is far beyond even what we can imagine today or what it is today.”

The preference shares were also concurrently listed on the Barbados Stock Exchange.

PBS represents more than 100 leading global technology brands seeking to do business in the Caribbean and Central America, including Apple, Akamai, Cisco, Dell, Fortinet, HP, IBM, Leidos, Microsoft, NCR, Oracle, Quadient and Xerox. It operates in 19 countries and employs more than 2,000 information technology professionals.

WATCH: Productive Business Solutions lists preference shares on the JSE

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