Thu | Aug 5, 2021

Another Sygnus company to list on JSE

Published:Wednesday | July 21, 2021 | 12:08 AM
Berisford Grey, CEO of Sygnus Capital.
Berisford Grey, CEO of Sygnus Capital.

Real estate finance company Sygnus Real Estate Finance Limited is tapping the capital market for as much as $4.6 billion in an initial public offering, IPO, funds it will use to finance deals in its pipeline that the company says are worth about $5.5 billion.

Sygnus Real Estate, a member of the Sygnus Capital group, is issuing up to 207,608,341 ordinary shares, in two classes – Jamaican dollars and US dollars – of which 72.66 million shares will be available to the public for subscription at $17.90 and US$0.1170. The rest is reserved for existing shareholders, team members and key investors.

Depending on demand, Sygnus Real Estate may upsize the offer to just under 38.86 million shares, which if fully subscribed would bring in some $300 million more and push the IPO proceeds to $4.9 billion.

Some of the proceeds, net of fees, will used to partially repay vendor mortgages of up to $1 billion.

Sygnus Capital is acting as the lead arranger of the offer with joint lead brokers Sagicor Investments Jamaica Limited and Scotia Investments Jamaica Limited.

The offer will be on the market from July 23 to August 20. The shares will be listed on the main market of the Jamaica Stock Exchange thereafter.

Sygnus Real Estate launched its first development this month – the IMCA Jamaica headquarters and Caterpillar outlet, a US$8-million, or $1.24-billion, turnkey project for the heavy- duty equipment distributor. The company expects to launch its second development project in 30 to 60 days at Belmont Road, Kingston – a nine-storey commercial complex featuring four levels of parking.

The two projects have a combined value of approximately $4.05 billion.

Sygnus Real Estate will be the second Sygnus company to list on the stock market, the other being credit financier Sygnus Credit Investments Limited.

neville.graham@gleanerjm.com