Regency Petroleum Company Limited is now trading on the Jamaica Stock Exchange (JSE) with Symbol RPL, having come to market with a massive oversubscription of 327% for its Initial Public Offer and the second company to list from the transportation fuel sector on the JSE’s Junior Market. The prospectus of RPL was published on November 17, 2022, with an Offer open date of November 24, 2022. The offer was for 287,157,354 ordinary shares at an invitation price of $1.00 per share for the public. The Offer opened on November 24, 2022, and closed the following day, November 25, 2022. RPL is the 47th Company on the Junior Market and the 101st company (151 securities) on the JSE. Including the $287.16 million raised by RPL, a total of $1.89 billion has been raised through JSE from the six IPOs since the start of the year, increasing the market capitalization of the Junior Market to over $190 billion and the overall market capitalization of the JSE combined markets to $1.87 trillion.
“The Exchange is delighted to welcome RPL as part of the Exchange’s growing family, who we are pleased to report is very bullish about good corporate governance and a good relationship with their shareholders,” remarked Dr. Marlene Street Forrest at RPL’s Listing Ceremony on December 15, 2022. We celebrate this listing today which has allowed us to keep what has become a tradition, the listing of a company within the Christmas season. RPL is the sixth Junior Market company to be listed since the start of the year and we are closing the year over the number of Junior Market company listings for 2020 and 2021. This signals that the market which was highly active with respect to the performance of the index is now experiencing an uptick of 13.89% year to date. This bodes well for issuers and investors.
Market participation in this issue says a few things,” added Dr. Street Forrest:
- Investors believes in the company and felt they were receiving value for money.
- More persons are now understanding the market and the benefits of investing in the stock market.
- Oversubscription shows that there is a need for more initial public offerings such as this.
“RPL’s listing and explaining their journey should inspire other companies to aspire to take the necessary steps to capitalize their businesses through equity financing. The activities undertaken by this Company are a testament to how through the market, it is possible to recalibrate one’s capital structure to achieve a company’s strategic objectives. We recommend others to take advantage of the market opportunities that are available and in so doing the Exchange will provide value to investors and the country in general,” Dr. Street Forrest said.
RPL’s Chief Executive Officer, Mr. Andrew Williams, in his remarks said, “We had a vision, and we give thanks to God that we were able to realize the vision, and today we are listed on the Number One Stock Exchange in the world. This is not a mean feat; it is extraordinary. I want to take the time to say to persons who are entrepreneurs that you too can do it, if you pay attention to proper governance, and have the dedication and good guidance necessary to list your company. Therefore, do not be afraid to call the Stock Exchange to get the guidance to cross that finish line to listing your company.”
“I want to thank my staff, my family, and all those who have contributed to us being here. We have just been birthed, therefore, there is much more to come from Regency Petroleum, not just locally, but regionally, but we have set our sights to go international,” said Mr. Williams.
“This is a great day for Jamaica,” declared Mr. Ryan Strachan, Vice President Investor Relations at GK Capital Management and Lead Broker for RPL. “We are seeing participation in our local market! It is not just seeing businesses grow and not being able to play a part in them; but through the Jamaica Stock Exchange, we are seeing where investors can actively benefit as well. “
“It’s no surprise that we are seeing Jamaica growing and that’s wonderful for the future,” continued Mr. Strachan. “The deal came together very quickly [RPL and GK brokerage}. We got the call in May and by October it was finished. It speaks to the quality of the Corporate Governance and to the integrity in the Company’s operations,” said Mr. Strachan.
