NCB Financial Group, the Kingston-based financial services conglomerate majority owned by Jamaican-Canadian billionaire Michael Lee-Chin, has announced plans to raise J$27.8 billion ($180.1 million) through the sale of new shares to investors.
The move follows shareholder approval to issue up to 450 million new shares, aimed at bolstering the group’s capital position.
The decision to pursue this capital-raising initiative was confirmed at an extraordinary meeting where NCB’s new management gained approval from shareholders to proceed with the issuance of up to 450 million new shares. This offering includes 300 million units for sale to current shareholders and other stock market investors, with the option to expand it by 50 percent to 450 million units.
At the meeting, NCB Financial’s new management did not disclose the indicative price of the additional public offering (APO). Interim CEO Robert Almeida stated, “To be clear, we do not expect to issue the authorized shares in one single offering.” This suggests that the share issuance might occur in multiple tranches over time.
NCB, a financial holding company incorporated and domiciled in Jamaica, holds the distinction of being the country’s top banking group in terms of assets. The group is majority-owned by Lee-Chin, a top figure among the world’s Black billionaires, with a 52.68-percent stake through AIC (Barbados) Limited, a subsidiary.
Despite boasting the highest asset value among banking groups in Jamaica, NCB Financial Group ranks second in market capitalization, trailing behind the insurance and banking conglomerate Sagicor Group Jamaica, with market capitalization figures of J$155 billion ($1.05 billion) and J$174 billion ($1.13 billion), respectively.
The proposed offering of 450 million units represents an 18 percent increase in the existing 2.46 billion units, raising concerns that this surge in supply could impact NCBFG share prices, which are already trading at one-year lows of J$62.8 ($0.407) on Thursday morning. As the conglomerate navigates this capital expansion plan, investors will closely watch the unfolding developments within the financial market.
