Mayberry Jamaica Equities Limited, formerly known as Mayberry West Indies Limited, has its eyes set on releasing an initial public offering (IPO) hopefully next month. The company is now awaiting regulatory approval as shareholders already welcomed the move. The company’s portfolio will only contain stocks listed on the Jamaica Stock Exchange. The listing of the company is targeted towards millennials between the ages of 18 – 29 years, giving them the opportunity to start investing at an early age rather than to rely on saving.
Mayberry hopes the stock will be valued based on the net book value of the company as they argue that the stock currently trades below its market value. This was blamed on the fact that the accounting valuation technique being used to determine Mayberry’s stock price does not take into account its equity portfolio; which holds 80 percent of the company’s assets. Therefore, Mayberry sees the listing of its subsidiary as a smart move which will allow the market to better value its stock portfolio.
Mayberry’s revenue for the financial year of 2017 increased by 83 percent, from $1.20 billion to $2.20 billion. This was attributed to gains on investment revaluations, foreign exchange gains, gains in corporate financial advisory fees and commissions. While net profit for 2017 was $475.2 million compared to $172.1 million the previous year, a rather impressive increase of 147 per cent.
Mayberry Investments Limited currently trades at $6.25, however, the company claims the stock price should be between $10 and $20 based on its earning per share. The company’s book value is $7.80 but clearly trades below it.
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