Get more stuff like this
Get the latest Jamaican stories in your inbox
Thank you for subscribing.
Something went wrong.
Your chance to own a slice of Wigton Windfarm
Ordinary Jamaicans will get the chance to buy shares in Wigton Windfarm Limited. The initial public offering (IPO) opens on Wednesday, April 17, 2019, at 9:30 am and close on Wednesday, May 1 at 4:30 pm. Mayberry Investments Limited is the lead broker in the Wigton IPO.
The IPO is a chance for the Jamaican public to own eleven billion shares at 0.50 cents each. Additionally, Public Sector Workers will also own 2.2 billion of those shares.
Not only will ordinary Jamaicans get a chance to own a piece of the company, but also the Government will raise $5.5 billion during the process.
Small Investors the first priority in “bottom-up” distribution
The GoJ intends to foster wealth creation for Jamaicans from all walks of life said the Prime Minister, Most Honourable Andrew Holness. He was speaking at the launch of the Wigton IPO at The Jamaica Pegasus hotel on April 9.
Furthermore, smaller investors will receive preference over larger entities. According to the Finance Minister, Dr. Nigel Clarke, a “bottom-up” distribution procedure will be used. This method ensures that micro and small applicants who applied last will have their orders filled before larger investors. Also, the Finance Minister appealed to Jamaicans to take this opportunity seriously. “This is a path to wealth creation for the ordinary Jamaican”, he said.
Interestingly, the Wigton Windfarm offering is the first IPO of a Government-owned company in nearly three decades. Unlike past IPOs, the Government is divesting 100% of the company through the Jamaica Stock Exchange. Previously, the Government would have divested only a portion of its holdings through an IPO.
What is Wigton Windfarm?
Wigton Windfarm is a part of the Petroleum Corporation of Jamaica (PCJ) group. It began operations in 2004 with a 20.7 megawatt-generating plant, Wigton I. The Government of Jamaica established the Wigton Windfarm as the largest wind energy facility in the English-speaking Caribbean. Essentially, it contributes to Jamaica’s diverse energy mix.
In 2010, the government commissioned Wigton II to add 18 megawatts of energy. In June 2016, Wigton III, a 24-megawatt addition to the Wigton facility followed.
Evidently, Wigton Windfarm continues to perform well. During the nine months ending December 31, 2018, it achieved sales revenue of approximately $1.95 billion. In fact, during the prior period ending December 31, 2017, the company saw $1.91 billion in sales. Net profit during the nine months 2018/2019 stood at $729.5 million. For the comparable period in 2017/2018, net profit was $1.0 billion.
Other Government Owned Companies to be divested
Prime Minister Holness announced the upcoming divestment of the Jamaica Mortgage Bank and the Jamaica Public Service Company.
He noted that, as far as possible, the Government intends to put business operations in the hands of shareholders.
Wigton Windfarm (WWF) will be the second company in the energy sector to be listed on the Jamaica Stock Exchange (JSE).