Regency Petroleum basis of allotment out
REGENCY Petroleum Limited (RPL) has published its basis of allotment for the various pools of investors who applied to the initial public offering (IPO).
The fuel marketing company, which sells bulk petroleum in the cooking gas and transportation sector, sought $287.16 million in equity capital. Of that amount, $170.70 million is fresh equity capital with no more than $22 million to be spent on listing expenses. The company’s offer closed on November 25, 2022, a day after it opened. The offer was priced at $1 per share.
GK Investments Limited and the associates’ loan conversion pools received their full allotment of 100,000,000 shares and 16,461,000 shares, respectively. Key strategic partners and employees also received their full allotment from the pool, which had 55.50 million shares on offer. Any shares not applied for by RPL employees became available for key partners.
Based on the demand in the general public pool, which only had 115.20 million shares, investors were only guaranteed the first 10,000 units, with the excess balance pro-rated at 5.3 per cent. As such, a $1-million investment would receive 62,470 shares, with 52,470 shares coming from the $990,000 excess balance. Applications in the general pool with the same Jamaica Central Securities Depository number were consolidated and treated as one. The refunds are expected to be processed ten days of the closing date for an IPO which garnered more than $1 billion from over 10,000 applications.
The company’s application to list its shares on the Jamaica Stock Exchange’s (JSE) Junior Market will now be processed by the JSE’s Listing Committee to determine if the listing will be approved. If Regency is approved it would be the sixth company to list on the Junior Market since the start of the year. It would also be the 47th company on the Junior Market and the 149th listed security on the JSE. Regency Petroleum was incorporated in May 2018 but began operations in January 2019.