Mar 2016 Financial News

Key Insurance slated for listing tomorrow (Jamaica)

Mar 30, 2016

KINGSTON, Jamaica — JMMB Securities Ltd has confirmed that the latest entrant to the Jamaica Stock Exchange's (JSE) Junior Market, general insurance provider Key Insurance Ltd, is slated for listing tomorrow.

"Key Insurance is being listed tomorrow, March 31, at 9:00 am, at the Jamaica Stock Exchange," the representative said.

If all goes well, the company would have squeaked through the door of an expiring tax regime in which Junior Market companies are offered freedom from corporate tax payments for the first five years of listing, and must remain on the market for 15 years. On April first this regime will expire, leaving new entrants without the tax benefit unless the government decides otherwise.

This morning, ISP Finance Services Ltd, which also successfully closed its IPO, was listed as the 27th company on the Junior Market.

ISP sought to raise J$97.97 million in total from sale of 48,982,500 shares offered at a price of J$2.00 each.

On March 24, car dealer Jetcon Ltd was also listed on the market after meeting its target of $96 million raised by IPO.

On Tuesday March 29, JMMB advised that the Key Insurance IPO, which opened on Tuesday, March 29 at 9:00 am, was closed at 9:01 am with the offer oversubscribed.

Key Insurance offered for sale at $2.27 per share 92,115,215 units. 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 had said in its prospectus that it hoped to take advantage of the concessionary regime of the Junior Market, which currently offers entrants five years freedom from corporate tax and other incentives.

Source:
Avia Collinder
Jamaica Observer
Wednesday March 30, 2016

http://www.jamaicaobserver.com/business/Key-Insurance-slated-for-listing-tomorrow