Saturday 24 August, 2019

CinemaONE IPO raises over $14 million in new equity

Even though CinemaOne fell short of its goal to sell just over three million shares in its Initial Public Offering, the company was successful in raising in excess of the minimum required net proceeds of the Offer For Sale.

The CinemaONE IPO secured 466 purchase applications for 1,444,168 ordinary shares at $10.00 per share, to raise $14,441,680 in new equity. 

The IPO is now closed after it was extended for an additional week. 

The company will create history trading as the first company on the Small and Medium Enterprise (SME) Exchange of the Trinidad and Tobago Stock Exchange (TTSE).

Listing and trading of the company's shares are expected to begin on November 14, under the symbol ‘CINE 1’. CinemaONE will also emerge as the first entertainment stock on the TTSE.

In a release, CinemaOne said the Offer For Sale of 3,088,373 shares of no par value at $10.00 per share, was successful in raising in excess of the minimum required net proceeds of the Offer For Sale, as outlined in the approved prospectus.

The release said all successful applicants will receive their full allotment, which is 100 percent of their application.

"The level of application should not be taken to be indicative of either the market price of these securities or the business prospects of Cinemaone Limited," the release said. 

The transfer of these ordinary shares to the investor accounts is proposed for November 9 subject to approval by the Trinidad and Tobago Stock Exchange and the Trinidad and Tobago Central Depository. Statements with the share allocation of each Investor will be mailed out by the Trinidad and Tobago Central Depository.

The release said SMEs who raise capital on the stock exchange through an IPO are required to attract a minimum of 25 non-connected shareholders, holding at least 30 per cent of the company’s newly issued share capital.

In expressing her delight, Ingrid Jahra, Chief Executive Officer of CinemaONE stated “I am elated by the public interest and would like to thank our individual and institutional investors for their support as demonstrated by achieving 18 times the minimum number of non-connected shareholders. We are confident of our growth prospects and potential and we plan to deliver long-term shareholder value through our plans and strategies."

First Citizens Brokerage Advisory Services was the lead broker for CinemaONE Limited’s inaugural SME IPO.  CinemaOne Limited is an entertainment company that offers differentiated and innovative digital cinema entertainment in multiple, premium movie formats including the Digicel IMAX Theatre, Gemstone VIP Cinemas and 4DX Theatre.

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