Proven Investments Limited’s additional public offer (APO), which was pulled from the market back in June, is now back on the drawing board.
This after the company’s board of directors authorised the management to take formal steps to obtain all necessary regulatory approvals to launch an invitation to the public in Jamaica for an APO. In a regulatory filing with the Jamaica Stock Exchange, where its shares are traded, Proven advises that details of the APO will be available when the necessary regulatory approvals are granted.
The current bearish run of the local stock market resulted in Proven pulling its APO, which was opened in February this year and scheduled to close on March 31 but was extended until June 5 and pulled thereafter due to the COVID-19 outbreak in the island.
Sources confirmed that one of the reasons for pulling the APO in June was that Proven’s stock price was trending far below the APO subscription price of US$0.28 or $38.64 per share.
Proven had invited the public to buy into a maximum of 267,857,143 new ordinary shares to raise $4 billion or the equivalent of about US$30 million. The capital raised was to be used to execute already identified opportunities, particularly in the finance sector, in the English-speaking Caribbean as well as Jamaican real estate.
Some of the proceeds raised will go towards the execution of the VIA at Braemar, a 99-unit, 10-storey apartment building in New Kingston. The development was designed for the Jamaican middle class, with studio units selling for about $21 million and one-bedrooms for $27 million.
The company earlier this year broke ground on AVISTA at Bloomfield, a residential complex on nine acres in Mandeville, near the MegaMart supermarket. The property will be designed as an Airbnb/hotel and residential development, but rather than the tourist trade, it will target the local commercial market.
Despite the inability to secure the APO funding, Proven’s President and Chief Executive Officer, Chris Williams told shareholders last month that the investment and real estate development outfit has enough resources on hand to execute any potential deals, which may arise during this period until the APO is executed.
Proven has about US$40 million in liquid assets that and are held primarily in tradable fixed income securities in addition to having US$30 million of credit lines that are in place that the company can access.