Elite Diagnostic Limited (ELITE), on February 20, 2018, became the first company to list its shares on the Junior Market for 2018. The IPO offer for $141 million, with an invitation price per share of $2.00, was oversubscribed by 768%. This puts Elite in an elite group of companies whose shares were also oversubscribed. Elite Diagnostic increases the total listed companies to 35 and the total listed securities to 39 on the Junior Market. Including Elite, the total number of companies listed on the JSE now stands at 72 representing 93 securities. Including the $141 million raised by Elite, the total capital raised by the companies listed on the Junior Market now total $7.6 billion, fulfilling the objective of the Junior Market to enable access to equity capital. Also with this listing, the market capitalization of the Junior Market increases from $120.70 billion to $121.4 billion.
Speaking at the listing ceremony today, Mrs. Marlene Street Forrest, Managing Director of the JSE, told the audience, “The JSE’s Junior Market Index, which commenced at 100 points in 2009 closed at 2,732.13 points on December 31, 2017. Since the start of the year, the JSE’s Junior Market Index has increased by 5.11% or 139.63 points to close at 2,871.76 points on February 19, 2018. This is really a testimony that the market is working for the companies and its shareholders. I wish to encourage Elite Diagnostic and other companies listed on the Exchange to continue to provide value to your shareholders by not only concentrating on the bottom line but also focusing on good corporate governance, which in turn will drive profitability”.
According to Mr. Warren Chung, CEO of Elite Diagnostic Limited, for a five-year-old company to be listed on the Junior Market of the Stock Exchange, this is a great success and a testament to the hard work of the Elite team which has led to this magnificent achievement. “Elite will continue to perform for its shareholders as the company move from strength to strength”, he said.
Mrs. Misha McLeod Hines, Manager of Sagicor Investments Limited, which provided Elite alongside NCB Capital Markets Limited, with brokerage services said, “As co-brokers for this transaction, we are pleased to have seen that the IPO surpassed its target and was oversubscribed within hours of its opening. That is an amazing feat, which shows the confidence our investors have in our stock market and health sector. This transaction is testament to the greatness we can achieve when we come together and work to achieve one goal. It shows that through partnership, we can give investors an opportunity to actively be a part of developing Jamaica by contributing to our stock exchange. I must express thanks to the team at NCB Capital Markets who worked with us as we executed this transaction.
In his remarks Mr. Herbert Hall, AVP Investment Banking of NCB Capital Markets Limited, told the audience that “It is a great privilege that NCB Capital Markets stands with Elite Diagnostic Imaging Centre, the second medical facility to be listed on the Junior Stock Market. This listing proves to be an ideal opportunity for industry diversification, giving investors the chance to expand their portfolios. It additionally offers more potential for growth as equity tied to the health industry continues to become more attractive owing to the rise in medical tourism”.
