The Jamaica Stock Exchange building on Harbour Street. - File

The Jamaica Stock Exchange redeemable preference share offer has raised $124 million, a near doubling of the actual target.

The JSE had hoped to raise $66 million from 33 million shares, or $2 per unit, but instead got subscriptions for 62.15 million units during a two week placement, May 16-30.

"Persons were really excited about it," said Marlene Street-Forrest, general manager of the Jamaica Stock Exchange and head of the commercial division.

Variable returns

The shares, which mature in five years, will pay variable returns tagged to the Bank of Jamaica's benchmark six-month treasury bill rate or its six-month open market tenors, whichever, the JSE says, is higher.

Street-Forrest said that while there was a strong participation from large private investors to the offer, the take-up spanned the entire spectrum of small, medium and large investors.

The JSE has applied for the listing of the units on its own exchange in a transaction with the JSE's regulatory division headed by Wentworth Graham.

Turning point

Listing of the stock is anticipated by or before the end of June, marking another turning point for the JSE as a publicly listed company.

As a listed company, the JSE is expected to be guided by the same agreements and rules that govern all other public companies, including the reporting of quarterly and annual financial statements, and disclosure of information to the market on any material events.

Lead broker on the placement was NCB Capital Markets Limited.

sabrina.gordon@gleanerjm.com