Having secured its brokerage licence earlier this year, JN Fund Managers is hard at work.
The securities dealership is the lead broker for Stationery and Office Supplies (SOS), which is seeking to raise $95 million via an initial public offering on the Jamaica Stock Exchange Junior Market.
Deputy General Manager of JN Fund Managers, Jermaine Deans revealed that the company currently has 30 transactions in the pipeline and hopes to list up to three companies this year.
“We continue to have meetings on a weekly basis with potential candidates to list. Normally, from your first meeting to a day like today, it can take a minimum of four months to a year,” Deans said in an interview with Loop News after an SOS investors’ briefing on Monday.
Moreover, JN Fund Managers is made up of a team of people with a wealth of experience in capital markets. It is led by managing director Allan Lewis, who joined the company in October 2016 after 10 years at Victoria Mutual. Sharon Whitelocke, who has more than two decades of experience in the financial industry, also serves as deputy general manager.
“This is not my first IPO, I have done several IPOS on the market. I’ve been a part of the biggest common share IPO on the market to date on the stock exchange,” Deans said.
The investment banker also noted that JN Fund Managers is one of the most cost effective brokerage firms on the market, making it attractive to companies.
“We are not in this business to charge you a significant transaction cost. Our aim is to serve clients and we are keen on helping the development of the stock exchange,” Deans said.
Commenting on SOS, which opens its invitation on Monday July 17, Deans said it’s a quality company, with a good track record and he expects a strong take up from investors.
“The Jamaican public on a hold is seeking investments. That’s not going to stop especially in a context of a reduced interest rate environment,” Deans said.
The SOS IPO comes amid two other listings, Productive Business Solutions and Express Catering, but Deans remains confident.
“We don’t anticipate that it will cause an issue for us, and that’s pure coincidence,” said Deans.
He added: “Even though there’s a lot of noise from the other two offerings, it’s just seeing that the market is so warm to SOS, it makes me feel very good irrespective of the other IPOs in the space.”
Deans further suggested that the market was being fueled by investors who are looking for attractive alternatives to fixed income securities which are “not the order of the day anymore”.
“So you having a build-up of capital in savings accounts that is seeking a permanent home. So I think all three primary issues will do well,” he said.