IBEX Holdings Limited will be releasing its IPO on Thursday, March 29, 2018. The company plans to raise US$60 million from 4 million shares. Each share will be sold between US$14 – US$16. Of the 4 million shares available for the IPO, IBEX will be allowing Amazon to secure 10 percent of the offer.
IBEX Holdings was founded in 2004 and provides outsourced customer support and marketing services for clients, including a few Fortune 500 companies based in the U.S. The company has 25 service delivery locations in seven countries including Jamaica. There are two IBEX centers in Jamaica located in the heart of Downtown Kingston and the other in Portmore. Both centres employ up to 2500 employees as reported by IBEX up to January 2018. So far, IBEX has invested US$5.9 million in capital expenditure in Jamaica over 6 months. The company benefits from reduced income tax between 8 to 10 percent until the year 2027 as per conditions under the Special Economic Zone regulations.
IBEX Holdings has recently secured a non-revolving credit of US$1.4 million from First Global Bank. The loan secured by all the assets of the company and has a fixed interest rate of 7 percent annually. For the financial year ending 2017, IBEX made revenue of US$334.5 million, a 3.4 percent increase from the US$323.6 million in revenue made in 2016. However, the company made an operating loss of US$2.3 million which saw their operating margin being in the negative for 2017. As of December 31, 2017, IBEX had US$12 million in cash but has a debt of US$131.5 million.
For a promising company, do you think IBEX is an IPO worth buying?
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