Government of Jamaica makes $9 billion haul via NROC/TransJamaican share sale

 


The National Road Operating and Constructing Company Limited which via TransJamaican Highway Limited offered for sale shares in that company, closed the offer on March 18, 2025, with an oversubscription of 36 per cent despite the offer being upsized.

Reserved share applicants will receive 100 per cent of their bid. From the general public, applicants will be allotted the first 2,778,000 Sale Shares applied for and approximately 33.065 per cent of the balance of the amount applied for.

Applications which were not met in full will be refunded as noted in the Prospectus. All applicants will receive a formal letter from the JCSD advising them of their respective allotment of shares in TransJamaican Highway Limited in due course.

The Development Bank of Jamaica (DBJ) was this year mandated by the Ministry of Finance and Planning and Cabinet to execute the sale of the National Road Operating and Constructing Company (NROCC) shareholding in the TransJamaican Highway Ltd.

The GOJ, through NROCC, sought to raise approximately J$9 billion via an Offer for Sale of Shares on the Jamaica Stock Exchange. The DBJ was been instrumental in this process, providing transaction management support, ensuring that the public offering “aligned with best practices and delivers value to both investors and the GOJ,” the Development Bank outlined.

TransJamaican Highway upsized its offer of shares which opened on the Jamaica Stock Exchange (JSE) on February 24, 2025, for applications for the purchase of up to 1,750,700,000 ordinary shares in TJH.

Under the offer 1,050,420,000 ordinary shares were originally offered to the general public at J$3.601 or US$0.0228 per ordinary share and 700,280,000 reserved were shares being offered at J$3.60 or US$0.0228 per ordinary share. On March 14, the company indicated that it was making an upsized offer of 750, 300,000 in the capital of the company, due to demand.





This offer opened at 9:00 a.m. on March 4, 2025, and will close at 4:30 p.m. on March 18, 2025. Lead broker is NCB Capital Markets with JMMB as co-broker.

TransJamaican holds a 35-year concession for the East-West toll corridor in Jamaica. Revenue for 2024 was US$82.8 million, US$7.6 million up on the US$75.2 million earned for the year 2023, an increase of 10 per cent. Revenue increase was due both to increased traffic and rate adjustments during the year.

Net profit was US$31.3 million, a 31 per cent increase or US$7.3 million increase over net profit of US$24 million for the comparative year in 2023.

As of December 31, 2024, total assets for TJH stood at US$294 million, US$4 million more than total assets as at December 31, 2023 (US$290 million).

TJH stock was first listed in March 2020, the month that the COVID-19 pandemic emerged in Jamaica, at listing price of $1 per share. The company is now valued at $51.14 billion in market capitalization. The stock traded for between $3.87 and $4.17 on Thursday February 25.

Under the current offer, to 700,280,000 ordinary shares in the offer for sale are initially reserved for priority applications from, and purchase by “Strategic Investors” at a purchase price of J$3.60 or US$0.0228.

If the reserved shares were not purchased, they became available for subscription by the general public.

Caribbean Money Daily

 

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