Massy cross-lists on Jamaican stock exchange

Massy Holdings Ltd on Thursday announced that it has been initiated onto the Jamaica Stock Exchange (JSE) and now trades under the symbol Massy with an open list price of J$2,463.08.

In a media release it said the cross-listing represented a critical transaction and the decision at this time was a major step in building a more regional capital market.

The initial announcement of its intention to cross-list came in May 2021, and after the appointment of Barita Investments Ltd and First Citizens Brokerage & Advisory Services as advisers in August. Massy said the teams have given shareholders and potential investors in Jamaica an attractive opportunity to invest in one of the largest and most diversified companies in the region.

In December, Massy also sought approval from its shareholders for a 20-for-one share split to increase its issued share capital to 1.9 billion shares, which was meant “to support the success of the cross-listing and to ensure continued accessibility of the Massy share to all retail shareholders,” group chairman Robert Bermudez said then.

Vice president of investment banking at Barita Investments Terise Kettle said the cross-listing gave Jamaican investors an opportunity to widen their portfolio exposure to industries that were both unrepresented and underrepresented.

“These industries fall within Massy’s key industry portfolios which include gas products, motors and machines and integrated retail. Beyond industry diversification, Massy will allow investors on the JSE an opportunity to diversify their portfolios geographic holdings, as Massy operates in more than 15 countries in the Caribbean basin with most significant contributions coming from TT, Guyana, Barbados, the eastern Caribbean, Colombia, Jamaica and USA; offering investors an immediate foothold into these countries with the purchase of a single stock,” Kettle said.

She added that with the current size of its balance sheet and a renewed focus on growth, Massy’s intention was to become one of the most global Caribbean companies and its listing on the JSE was a step in its larger long-term strategic plan.

“Essentially, after 99 years of operations, Massy has recently restructured its organisation from a conglomerate to an investment holdings company, devolving greater autonomy to its portfolios while strengthening governance of the portfolios. The benefits of this have been impressive, the company’s balance sheet has strengthened significantly with additional cash that can be deployed towards growth-inducing initiatives, its debt has been reduced, and its profitability has grown commendably.”

Executive director, president and group CEO Gervase Warner said Massy has unlocked the formula for sustainable growth and future plans included geographical expansion both in the region and globally, as well as further investment in existing countries where growth prospects were most attractive.

“Future investments will be focused on our three main portfolios and the group is increasingly confident to start searching for global opportunities beyond the Caribbean basin. While we have a considerable cash reserve and significant borrowing capacity to fund our growth plans, the cross-listing on the JSE enhances our prospects for raising additional capital in the future to support our most ambitious aspirations for growth,” he explained.