Summary

The article entitled TransJamaican IPO Projected To Triple Wigton Subscriptions - Pricing,
Prospectus And Offer-Period Disclosures Still Pending published on October 4, 2019 state that
the Jamaican government is taking over the toll concessionaire TransJamaican Highway Limited,
TJH, from its French owners but the terms are yet to disclose, as well as getting the company on
the stock market. The current managers have agreed to remain in control of the company for five
years following its listing on the Jamaica Stock Exchange (JSE).

Although information is limited about TransJamaican IPO it suggests that it could become one of
the largest transactions on the market at an estimate of about $11 billion by the Financial
Gleaner, NCB Capital also expects the subscription of the TransJamaican IPO to triple the
30,000 that flocked Wigton this would make it the most popular IPO in history.

Finance Minister Nigel Clarke wants the public to be ready for the listing of the IPO so they have
various briefings before establishing a time and price for the IPO. Minister Clarke also told the
Financial Gleaner that the company holds strong cash flows that will represent a unique
opportunity for pension funds and individual investors.

With the Jamaica’s ownership, TransJamaican will bid for future road tenders in a competitive
process to generate new revenue. According to the data provided by TransJamaican for 2017 the
most travelled tolling points were Portmore and St Catherine which produce revenues above $8
million on a daily basis and revenue had been growing in the range of five to 10 per cent yearly
since that time.

The ordinary shareholders in TransJamaican include Bouygues Travaux, with 13.2 million of 27
million ordinary shares; Vinci Concessions of France, with 6.8 million shares; Washington-based
International Finance Corporation, the private sector-funding arm of the World Bank, with 4.6
million shares; and Societe de Promotion et de Participation Pour la Coopération Economique
SA of France, which holds 2.4 million shares.

Jamaica’s National Road Operating and Constructing Company Limited, NROCC, holds a single
‘golden’ preference share through which it is said to have veto power over decisions made by the
toll concessionaire. The TransJamaican’s annual returns for 2018 described the Jamaican
Government as having “more than 50 per cent” of the issued shares of the company through its
single preference share, while Bouygues holds 48.8 per cent of the ordinary shares and
equivalent voting rights.

The Jamaica’s toll-road programme, which includes other roads build by the Chinese, NROCC
racked up massive debts that government documents have placed at $99 billion to meet its
project obligations. The funds raised in the TransJamaican IPO will go towards paying down on
the debt, some sources said that the Government is likely to finance the takeover of
TransJamaican Highway with a loan.
The CEO of NCB Capital Markets Steven Gooden said that the TJH listing was expected to
surpass the amount raised in the IPO for Wisynco, which holds the record for the largest stock
market float in Jamaica’s history which raised $6 billion from the IPO. It is believed that 90,000
applications will attract for TransJamaican IPO. Mr.Gooden trust that the broker will be able to
handle such large numbers of applications because of its investment platform that allows
electronic subscriptions. NCB Capital was selected to arrange the TransJamaican transaction in a
competitive tender that attracted bids from 16 brokers,

Points

 The IPO for Wisyco raised $6 billion which hold the largest record on the stock market for
Jamaica with 30,000 applications and the TransJamaican IPO is estimated about $11 billion
with 90,000 applications which will become the largest in Jamaica history. The TransJamaica
IPO will allow the company to get access to investment from the entire investing public to
raise capital to pay off their debt. It will increase the company’s exposure and public image,
which can also increase the company’s profits.

 The most travelled tolling points were Portmore and St Catherine which produce revenues
above $8 million on a daily basis and revenue grow in the range of five to 10 per cent yearly.
This will attract many investors and increase their confidence since they will see an increase on
their investments in the near future.

 The company holds strong cash flows that will represent a unique opportunity for pension
funds and individual investors. This mean TransJamaican Highway Limited can invested in
pools that pay for employee retirement commitments or individual investments where person
purchase shares for their own personal benefits.