Alternative investment company Sygnus Credit successfully closed the largest public perpetual preference share raise on the Jamaica Stock Exchange. 

The offer, which opened on November 25, was initially set to close on December 12. However, due to higher-than-anticipated demand, the offer was extended to December 30. The company received 1,156 orders that amounted to J$1.71 billion and US$22.05 million respectively for the perpetual (no maturity date, allowing for long-term capital placement) cumulative redeemable preference share offer.

Initially set to raise J$1.2 billion (up sizeable to J$1.6 billion) and US$20 million, for the JMD and USD preference share classes respectively, the offer received the equivalent of approximately J$5,169,622,881.00 (US$32.9 million).

The offer had two classes of preference shares, both of which were oversubscribed. The Class H JMD preference shares yielding 10.00 per cent were oversubscribed by 43 per cent, while the Class I USD preference shares yielding 8.00 per cent were oversubscribed by approximately 10 per cent. Sygnus Credit Investments (SCI) successfully applied to the regulators to upsize the offer by an additional amount of up to US$5.00 million equivalent, ensuring that participating investors received 100 per cent allotment of shares.

Jason Morris, chief investment officer and executive vice president at Sygnus, expressed his appreciation, stating, “We are once again honoured by the overwhelming support from investors for this landmark public offering. It is the largest public perpetual preference share raise in the history of the Jamaica Stock Exchange”.

“This achievement marks yet another major milestone for Sygnus Credit Investments and the private credit sector across the Caribbean. Raising the equivalent of over J$5 billion in this offer underscores the strong confidence investors have in our strategic vision and business model. It further highlights the growing demand for alternative investments as a crucial component of a diversified portfolio. We extend our sincerest gratitude to the JMMB Group Capital Markets team for their outstanding execution in attracting over 1,000 investors within just four weeks. This capital will empower us to deepen our impact, enabling flexible debt financing for businesses and projects across the region,” he added.

SCI’s diverse investment approach encompasses deploying capital to various industries, including manufacturing, distribution, financial services, energy, industrial, construction, transportation, infrastructure, and business services. 

Gregory Samuels, vice president of investment banking at Sygnus Capital and lead arranger on the transaction, commented, “This milestone achievement highlights the growing recognition of Sygnus as a leader in alternative investments and the trust placed in us by investors. The preference share offering’s oversubscription is a reflection of the robustness of the private credit market and investor appetite for innovative financial solutions. Our team worked tirelessly to ensure seamless execution, tapping into a broad base of investors. The success of this raise solidifies our commitment to providing value-driven opportunities for both clients and stakeholders.”

Karl Townsend, chief country officer for the group’s Capital Markets Unit (Jamaica) at JMMB, expressed “We are happy to continue to support companies like Sygnus Credit Investments Limited in raising capital on our local stock market to achieve their strategic growth goals.” 

He highlighted that there was an overwhelming investor response to the SCI redeemable perpetual preference share offer, which was significantly oversubscribed even after being upsized. 

“This strong interest underscores the value investors saw in the offer for wealth creation, portfolio diversification, cash flow, and the company’s long-term vision.” Townsend, also noted that as the lead broker, JMMB Securities Limited leveraged the extensive JMMB network, expertise, and online investment platforms (Moneyline and MoneyLine IPO) to provide investors with a seamless way to apply for shares in the offer. “We remain steadfast in providing businesses with innovative solutions designed to support them in achieving their strategic objectives.”

An application for listing on the Jamaica Stock Exchange is expected to be completed in January 2025.