Access Financial Services Ltd., a micro-finance, consumer and small business lender that’s based in Kingston, has received regulatory approval for an initial public offering (IPO) on the Jamaica Stock Exchange’s Junior Market. The company is reportedly seeking to raise approximately J$100 million through the listing of some 5.4 million new ordinary shares (equivalent to about 20% of the company’s total stock). October 14, 2009 is the expected IPO date.
Founded in September, 2000, Access’ employee headcount has grown from two at the company’s launch to 88 today, and it currently has some $400 million in extended loans in its portfolio. In 2006, it sold a 49% stake to Mayberry Investments for an undisclosed sum, and now has its sights set on raising more capital via this public listing. The public offering, at full take-up, will dilute their holdings to 41 per cent for Marcus James (the company’s founder and CEO) and 39 per cent for Mayberry.
According to James, funds derived from the listing will be used to further grow the company, which intends to establish offices in every major town across Jamaica before looking towards regional opportunities. Currently, it has offices in Kingston, Portmore, Mandeville, May Pen, Ocho Rios, Montego Bay and Savanna-la-Mar.
Access Financial Services Ltd. offers consumer loans from $5,000 to $350,000, and small business loans up to $5 million. It uses non-traditional assets as collateral – such as a bill of sale on a motor vehicle, heavy appliances – as well as more traditional assets such as real estate mortgages for the small business loans.
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