Dec 2010 Financial News

Cargo Handlers allocation and refund finalised

Dec 08, 2010

The basis of allottment for the public pool of applicants for shares in Cargo Handlers Limited has been finalised, lead broker Mayberry Investments Limited announced yesterday.

Cargo Handlers' initial public offering (IPO) on Friday was oversubscribed. Sixty-four applications were received for approximately 8.9 million shares valued at approximately J$61 million.

Mark Hart currently holds 10.9 million shares in the company.

Mayberry advised via press release yesterday that allocation of units in the public and key constituent's pools should be as follows:

Public

· Applications between 0 -10,000: first 10,000 units -100 per cent

· Applications between 10,001 and over: balance > than 10,000 units - 80.67 per cent

Priority Shares

· Applications were allocated at 100 per cent

"For Investors who did not receive full allocation, their refunds will be finalized and available by Wednesday, December 15th, 2010. Refund amounts for clients of Mayberry Investments Limited will be credited to their respective accounts. All other investors may collect their cheques at Mayberry Investments Limited," said the company.

Based in Montego Bay, Cargo Handlers and its stevedores provide an essential service, namely cargo loading and unloading at the Montego Freeport. The Company contracts directly with the shipping lines that come into the Freeport and its stevedores load and unload both containerised and bulk cargo, of which cement, steel, and lumber form the largest part.

The company stated that it intends to use the money raised from the offer to lease a property at the Montego Bay port, alongside Berth Two, in order to increase the company's capacity for redistribution of bulk cargo items such as lumber, steel, cement from the port, and to perform the necessary (substantial) leasehold improvements. It will also purchase a 20 ton heavy forklift for use in bulk cargo operations purchase a shore crane to handle increased customer requests for Lift On, Lift Off cargo operations.

The company also intends to use a part of proceeds of the fund-raising to pay the expenses of the invitation, it stated.

The company expects to issue 8.1 million additional shares from the offer resulting in a total share issue of 41.6 million. Incidentally, the company in 2009 had 100 shares. Directors currently hold some 33 million shares including Mark Hart at 10.9 million, Anthony Hart at 11.3 million and Jane Fray 10.9 million.


Source:
Jamaica Observer
Wednesday December 8, 2010

http://www.jamaicaobserver.com/business/Cargo-Handlers-allocation-and-refund-finalised_8218905#ixzz17X4T1JTM