Mr. Donovan Perkins – President & CEO Pan Caribbean Financial Services Ltd. presenation
On January 31, 2008 Pan Caribbean opened our 5-year preference share offer which closed on February 29th.
We sold a total of 6,321,621 shares at a price of $200 per share – the support was extensive with both institutional and individual investors participating.
22 Institutional investors subscribed J$844M or 67% of the funds received while 370 Individual investors subscribed J$416 or 33% of the funds raised.
In total, we raised $1.26 Billion with a dividend coupon of 12.5% payable quarterly. The equity market had been a little more active in recent times, and over the last 3 years, four companies have gone to the market with successful ordinary share offers:
CCMB raised $1.07 Billion in 2005
- Mayberry raised $911M in 2005
- H&L raised $350M in 2005
- Supreme Ventures raised $219M in 2006
In terms of preference shares, we are the fourth company to successfully raise money via preference shares in the last two years:
JMMB raised the most at $2.5B for 3 years via 12% and 12.25% preference shares
- Pan Caribbean $1.26B for 5 years
- NCB Capital Markets raised a total of $1.077B via a three-year issue that re-opened last year
- Mayberry raised $501M via its 3-year offer in 2007
In summary, $2.55B was raised via ordinary shares, while $5.3 Billion was raised via preference shares for a total of $7.9Billion…and we expect more companies to come to the market later this year, if interest rates subside.
We were very happy with the response to the Pan Caribbean offer for a number of reasons:
- First, we raised a source of stable funding for 5 years, two years longer than the most recent offers
- Second, it was attractively priced and within the market
- Third, it was the second largest share offer in recent times
Finally, it also brought in a large number of new clients to Pan Caribbean, providing us with opportunities to provide them with additional financial services.
These funds have been deployed in a mix of loans and investments, and we believe that this funding will make a contribution to generating another year of record profits and strong performance in 2008.
