Mar 2016 Financial News

7% of IronRock IPO goes to public

Mar 09, 2016

The Jamaica Stock Exchange’s (JSE) first IPO of the year, offered by general insurance start-up IronRock, closed early, with the public securing a mere seven per cent of shareholdings.

Gary Peart, CEO of Mayberry Investments Ltd, which handled the offer, said it was oversubscribed and allocated as prescribed in the company’s prospectus.

“A total of 344 applications for shares valued at approximately $571.8 million were received. Applications were dealt with on a first-come-first-served basis,” he stated.

IronRock — which made an invitation for 105,000,000 ordinary shares, each priced at $3 — saw the offer closed on the opening date, Tuesday, March 1, at 9:01 am because of the volume of requests.

Shares were allotted, as previously allocated, to 100 per cent of all applicants received through the company; 100 per cent to individuals described as key partners; and 100 per cent of the first 25,000 shares applied for and approximately 27.55 per cent of the balance to Mayberry reserved share applicants.

What was left for the general public, which fell outside of these categories, was 25,000 shares or approximately 7.31 per cent of the offer.

IronRock, which started in June 2015, is the newest of 11 general insurers registered locally.

The company said in its prospectus that it plans to compete around price and efficiency, leveraging automation and other technology to streamline general insurance processes. It is also targeting property insurance as a prime area for growth.

The company plans to list on the Junior Market of the JSE before March 31 when tax discounts will expire, unless this controversial edict – aimed at cutting government’s revenue losses – is reversed.

Source:
BY AVIA COLLINDER
collindera@jamaicaobserver.co
Business reporter
Jamaica Observer
Wednesday March 9, 2016    

http://www.jamaicaobserver.com/business/7--of-IronRock-IPO-goes-to-public_53653