New IPO: Micro Loans Company ISP Finance Services Ltd Going Public

9 year old micro loans company ISP Finance Services Ltd, which was incorporated in January 2007 and co-founded by Dennis Smith is aiming to raise J$98.0m and list itself on the Junior market of the Jamaica stock exchange.

The company, which began by providing unsecured loans to persons in the security guard industry, has since expanded to become a provider of short term micro and small loans to businesses and employed persons. As at December 2015, approximately 45% of its loans are to employees in the security industry and approximately 90% are unsecured.

In the prospectus, the company has reported that since its beginning in 2007 the company has grown their loan portfolio from J$2.5m to J$303.9m in December 2015. They have also grown the number of customers they serve from 40 to about 7,000 and their staff complement from 3 to 40.

The subscription opens next Monday March 21, 2016 at 9:00 am and the company hopes to raise J$97,965,000 by selling 48,982,500 shares (45,900,000 reserved) at a fixed price of J$2.00 per share. The offering is being led by Victoria Mutual Wealth Management Ltd.

The company hopes to improve its public profile, raise funds to finance their growth, and pay down their debt (now totaling J$217.8m) by listing on the Junior market of the Jamaica Stock Exchange. The company also wants to take advantage of the concessionary tax regime for Junior market companies.

Their directors include Dennis Smith (co-founder & CEO), Diyal Fernando (CFO), Primrose Smith (COO), Robert Chung (non-executive director), and two Independent non-executive directors Clifton Cameron, and Rosemary Thwaites. Wayne Wray was been appointed as a mentor for the company since February 15, 2016.