The Jamaica Public Service has the distinction of listing five securities on the Exchange with the listing of their Preference Shares (JPS’s 9.5% Cumulative Non-Redeemable Class ‘F’ Preference Shares) on the Market, on Friday, November 1, 2013. The Shares were offered through a private placement by NCB Capital Markets Limited, Scotia Investments Limited and CIBC Jamaica Limited. These 2,455,607 units of Class F shares will be traded in Jamaican Dollars under the symbol JPS9.5. The security has a market capitalization of $2.579b or 33.0% of the overall market capital of the preference shares listed.
Mrs. Street Forrest, General Manager of the JSE was very upbeat at the listing ceremony; She told the audience that “The JSE welcomes these new securities as we believe if we are to encourage investors to invest in the development of our country, we have to provide them with not only a transparent and efficient marketplace through which to invest but the products in which to invest. Ownership by Jamaicans in Jamaican companies, whether through ordinary shares or preference shares, is a critical path in improving the infrastructure leading to sustainable development. This is what the Stock Exchange seeks to foster through the different markets that we operate. We are committed to the development of the capital market but we cannot do it alone. The government and the private sector must see the need for the development and especially the formation of capital through equity financing”.
Mrs. Street Forrest went on to say “I wish to congratulate JPS again for listing. The very nature of these Class F shares, being non-redeemable has some characteristics of ordinary shares. However, we could not miss the opportunity of encouraging the Company to list its Ordinary Shares on the market thereby encouraging Jamaicans to participate in the Company through this medium and also providing the current majority shareholders with the mechanism for transparent market transfer if and when required”.
Mrs. Kelly Tomblin, CEO of JPS, in her address to the audience stated that “JPS has been a part of the national landscape for more than 90 years, and a long standing partner in over 95% of households and businesses across Jamaica. We believe that it is appropriate for Jamaicans to have more personal stake in the company that plays such an important role in national development”. She continued, “In another week we will be launching our prepaid electricity service as many of our customers have indicated a preference for prepaid service, which will help them to better manage their usage and their budgets. As we roll out this initiative across the island over the next few months, our customers will be able to choose between prepaid and postpaid service”. She also promised that there will be other securities listed on the Exchange in the future by JPS.
Mr. Lissant Mitchell CEO of Scotia Investments Limited and one of the Member Dealers that took JPS to market, in speaking at the event, stated, “we know that for JPS the endgame is never about listing, it has been about being the best energy company in the region by delivering strong financial performance to investors and been the best in service delivery to its customers. By the level of interest in the preference shares investors have signaled an important vote of confidence in the company’s strategies and our team and that is great validation for all the work that culminated in today’s ceremony”.
Mr. Dylan Coke, Vice President of Investments – NCB Capital Markets Limited, and the Lead Broker for the JPS transaction, stated that “it was very good for JPS to choose the capital market for their financing need as opposed to the traditional forms of financing. JPS is a company that touches on every aspect of Jamaican life and its performance impacts every businesses and households in Jamaica. Therefore JPS’s success is Jamaica’s success”.
