Dec 2010 Financial News

Dolphin Cove Issue largest on Junior Market so far

Dec 10, 2010

The Dolphin Cove Initial Public Offer (IPO), the largest issue so far for the Junior Market of the Jamaica Stock Exchange (JSE) was over subscribed and closed at 9:10 am Wednesday, ten minutes after it opened.

Lead financial advisor and sole brokers for the IPO, PanCaribbean Financial Services has advised that the 80 million share offer, totalling $240 million had exceeded expectations. This is Pan Caribbean's first IPO for the Junior Market and if Dolphin Cove is successful in its bid to list on the JSE, it will be the first tourism company to do so.

PanCaribbean CEO Donovan Perkins

"While we expected to do well, it has exceeded our expectations," PanCaribbean CEO Donovan Perkins told Caribbean Business Report Wednesday following the successful IPO.

"Subscriptions were very diverse with applications received from pension funds, corporate entities, institutional investors, high net worth individuals and small investors," Perkins added. "Some even appear to be first time investors in the equity market. We think this is good for the market, and will help other listings that come to market," he said. Shares were offered at $3 per share.

Dolphin Cove intends to use the proceeds for general expansion and working capital purposes including purchasing lands for the Ocho Rios Marine Park and a new marine park in Lucea, Hanover.

Analysts have predicted favourable growth prospects for Dolphin Cove, with the opening of the Falmouth port, which is 30 minutes away from both its Ocho Rios and Hanover attractions.

Perkins said investors agreed with this assessment and added that more companies should explore listing on the JSE.

"This success should help encourage other entrepreneurs with businesses that have good growth prospects to consider listing on the JSE with the attendant benefits. Our economy needs to make a shift to more balance between debt and equity financing to help companies grow," he said.

PanCaribbean is currently considering "other potential prospects for listing" but Perkins would not disclose who they were. "I expect 2011 to be a year where more companies come to market," he said.

The basis of the allotment of the company's shares will be made available within the next two days. Dolphin Cove will also make formal application for admission to the Junior market and if successful, will begin trading in the New Year.

Kevin Donaldson, Manager of PanCaribbean's Equities advised investors who were unable to purchase shares in the IPO to do so once the listing is approved and the company begins trading.


Source:
By Alicia Roache
Jamaica Observer
Friday December 10, 2010

http://www.jamaicaobserver.com/business/Dolphin-Cove-Issue-largest-on-Junior-Market-so-far_8224128#ixzz17iWkURGr