Ever since the JMMB Group succeeded in raising new capital via an additional offer of ordinary shares last year, local companies have been lining up to follow suit as they seek funding for expansion.
Kingston Properties Limited (KPREIT) is the fourth company to prepare for such an offer, the others being Proven Investments Limited and Barita Investments Limited.
On Tuesday November 3, KPREIT advised that it is considering doubling the number of the company’s ordinary shares as a prelude to going to the market with an additional public offer (APO).
The company gave notice via the Jamaica Stock Exchange that at a meeting of its Board of Directors held on October 27, 2020, the Board agreed to recommend to shareholders that the maximum number of authorised shares of the company be increased from 1,000,000,000 to 2,000,000,000 ordinary shares.
KPREIT further advised that the recommendation is in keeping with its strategic plan to substantially increase the equity base of the company, and will facilitate the company’s return to the equities market to raise funding, which will include an additional public offering in the near future, subject to the approval of its shareholders being obtained.
KPREIT said in its notice, “The Board intends to convene an extraordinary general meeting in due course (subject to, and in compliance with, the prevailing restrictions contained in the orders under the Disaster Risk Management Act), where among matters to be put to shareholders for consideration will be the proposed increase in the maximum number of authorised shares.”
Shareholders will also be asked to approve an additional public offering of new ordinary shares and the amendment of the company’s articles to allow for electronic meetings.
The company has, among its objectives, a target of one million square feet of real estate under management.
Since the start of 2020, the company has purchased a 88,000 square foot warehouse property on four acres of land in Kingston’s industrial belt and also Harbour Centre, a multi-story office building in the Cayman Islands. Read more
Source: Loop Jamaica