Mar 2016 Financial News

Key Insurance IPO oversubscribed (Jamaica)

Mar 30, 2016

Key Insurance Company Ltd, general insurance provider, has advised that its IPO which opened on Tuesday March 29 at 9:00 am was closed at 9:01 am with the offer oversubscribed.

It was indicated that the basis of allotment would be published today, Wednesday March 30.

Brokered by Investment House JMMB Securities Ltd, Key offered 92,115,215 units for sale at $2.27 per share. The company was targeting $119 million as the minimum.

Proceeds of the IPO, the company said previously, will be used to increase capital in order to grow core business; take advantage of opportunities to expand; and pay the expenses of the IPO.

Key Insurance says it hopes to take advantage of the concessionary regime of the Junior market which currently offers entrants five years freedom from corporate tax and other incentives.

The company, however, must remain listed for 15 years.

Key Insurance, started in 1983 by Soni Gobin, offers most classes of general insurance, the prospectus indicates. The company is currently managed by family members including Sandra Masterton, Natalisa Gobin-Hunter and Kala Abrahams.

Source:
BY AVIA COLLINDER
collindera@jamaicaobserver.com
Business reporter
Jamaica Observer
Wednesday March 30, 2016

http://www.jamaicaobserver.com/business/Key-Insurance-IPO-oversubscribed_56087