Oct 2010 Financial News

Lasco shares jump 15% on first day

Oct 13, 2010

ALL three listings on the Jamaica Stock Exchange (JSE) Junior Market for Lasco Group jumped by the allowed 15 per cent during the first day of trading yesterday.

What's more, holders of shares Lasco Distributors (LASD) and Lasco Manufacturers (LASM) — two of the three subsidiaries listed -- ended the day asking prospective buyers to pay $6 a share after they listed at $2.50 a share. Moreover, investors left closing bids of $3 a share for the shares that maxed out -- due to the JSE circuit breaker rule that prevents trading in the share at prices 15 per cent above or below the closing price — at $2.87 yesterday.

Even though LASD and LASM both traded last at $2.87 after 21,400 and 177,400 shares respectively crossed the floor of the exchange, they closed at $2.52 and $2.50 a share due to a 10-day moving average calculation. But the closing bid of $3 a share means that they could trade as high as $3.45 today, or 38 per cent above the listing price.

Only 500 shares in Lasco Financial Services (LASF) — the third listing -- traded yesterday but those shares closed at $2.87, or 15 per cent higher than listing. Moreover, the last closing bid was placed at $2.88 while holders of those shares are asking buyers to pay as much as $3.30 a share.

At yesterday's listing ceremony, Lasco group executive chairman, Lascelles Chin expressed appreciation for the overwhelming support of the Jamaican public to Lasco's products and services, as well as its phenomenal response to the Lasco Initial Public Share Offers (IPO).

"I would like to thank our beloved fellow Jamaicans, without whose support we could never have arrived at this day... We aimed to raise $415 million for the three companies, and within three minutes on September 15, those shares were oversubscribed to the tune of over $950 million," Chin said.

The funds raised from the IPO and the Listing on the stock exchange will be used to fuel the local and international expansion of the three Lasco-affiliated companies.

Gary Peart, CEO, Mayberry Investments Ltd — lead broker for the Lasco IPO — told the gathering at the listing ceremony that Lasco's entry into the JSE is a "win-win" for a wide cross section of Jamaica, including investors, Lasco, workers, government, and the financial sector.

He expressed confidence that increased jobs and increased production capacity as a result of the financing raised will redound to the benefit of the Lasco companies and country.

"Jamaica is at a point where it needs to grow," said Peart. "The record shows that small - and medium-sized companies are poised to play a leading role in such growth."

JSE general manager Marlene Street-Forrest added:

"We are indeed proud that through the hard work of the Lasco team, these companies will now be listed. We will be adding over one thousand new investors to the market. This is significant as one of the desired outcomes of the Junior Market is that there would be an expansion of ordinary Jamaicans taking real advantage of the Equities Market."


Source:
Jamaica Observer
Wednesday October 13, 2010

http://www.jamaicaobserver.com/business/Lasco-shares-jump-15--on-first-day_8050688