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Company experiencing a strong pipeline of investment opportunities

Durrant Pate/Contributor

The Jamaican-owned but Barbados-registered investment company, Quantas Advantage, has launched its Initial Public Offer (IPO) in Jamaica, seeking to raise upwards of US$15,468,622 /J$2.5 billion to grow the business.

The IPO, which is set to open next week on April 22, closes a month later on May 21, with the Arranger and Lead Broker being JMMB Securities at 6 Haughton Terrace, Kingston 10. The company is offering 83,278,509 ordinary shares at US$0.12/J$19.3941 per share with the right to “upsize” the offer by an additional 50,780,182 shares in the event of oversubscription.

The company is set to raise US$9,375,000/J$1.51 billion from the IPO, and if upsized, rake in a cumulative $15,468,622/J$2.5 billion. The IPO, according to the Prospectus, contains 19,736,842 reserved shares at US$0.1140/J$18.4244 per share for Strategic Investors and 41,666,667 reserved shares at US$0.1080/J$17.4547 per share for Anchor Investors. 

Some 21,875,000 non-reserved shares at US$0.1200/J$19.3941 per share offered to the general public. It is the intention to apply to the Jamaica Stock Exchange (JSE) for admission of the shares to the US$ main market with a cross-listing on the J$ main market. 

The application to the JSE is dependent on the company’s ability to: (i) issue at least 25,785,000 ordinary shares in the IPO and (ii) meet the criteria for admission.

Use of Proceeds 

Quantas Advantage intends to use the proceeds from the IPO to facilitate capital injection into the Company, which will afford it the opportunity to increase the size of the Company’s investment portfolio by acquiring assets. The company also intends to pay the expenses associated with the IPO which it estimates will not exceed US$900,000, inclusive of arranger, brokerage and advisory fees, legal fees, auditors’ fees, Companies Registrar’s fees, initial listing and marketing fees, and General Consumption Tax.

Quantas Advantage was launched in 2022 by investment banker, Adrian Stoke after raising US$17 million on the private capital market, the largest private raise in the market at that time, to purchase various contractual cashflows, including receivables, leases and mortgages and these assets are then repackaged, for example, as bonds and sold on to other investors.

Good financials and positive outlook

For the last financial year ended June 2025, Quantas Advantage generated a USD return on equity of 10.19%. This performance resulted from gains on sales of assets plus interest income on investments generated in our structured finance business segment. 

Of note, the company did not realise any credit losses throughout the period. The outlook for growth in 2026 is positive, with the company experiencing a strong pipeline of investment opportunities in structured finance and securitised assets, which has prompted it to enter the market to raise equity capital via this IPO. 

The funding will allow it to take advantage of attractive investments currently in its pipeline. Overall, Quantas Advantage is on a growth trajectory that will see it surpass historical performance.

In summary, the management is expecting the investment outfit to continue its strong financial performance anchored by solid risk management. 

Company details

The company is an innovative investment vehicle that seeks to increase the availability of capital to key business segments that are critical to the growth and development of the Caribbean. Quantas Advantage generates value for its stakeholders by investing in two distinct types of financing solutions: 

1. Structured Finance: The company invests in different types of credit solutions. This includes investments in bonds and other credit products to help private businesses grow and create value for their stakeholders. Quantas Advantage also buys the cash flows generated from different assets like leases and loans from entities like banks, broker-dealers and leasing companies, thereby creating or unlocking cash flow for the seller. 

2. Securitised Assets: The Company invests in securitised assets backed by pools of predictable cash flows through licensed securities dealers.