Business journalist David Rose says NCB Financial Group’s upcoming extraordinary general meeting will provide clarity on the company’s future plans.

NCBFG’s EGM is set for October 31. During the meeting, shareholders will get to vote on whether to approve the Board’s decision for an additional public offer.

The company’s Board of Directors previously approved the creation of 300 million new shares.

Speaking on Taking Stock with Kalilah Reynolds, Rose noted that the company also added the option to upsize the offer by 150 million shares.

“So you’re looking at anywhere between…

J$18 to J$27 billion if you assume a stock price of around J$60,” Rose said.

Rose said if shareholders approve, the APO could be executed by December or January.

“It will be interesting to see how the offer actually takes up,” he said, noting that NCB has several issues to overcome.

The company has not paid shareholders dividends since May 2021, and its stock price has fallen from the $200 range prepandemic to the $60-$70 range. 

Several senior executives have resigned from various roles within the group of companies over the past several weeks. Chairman Michael Lee-Chin said the company is refocusing its efforts on customer service and efficiency.

Additionally, the Jamaica Stock Exchange has struggled since the start of the year. There has been only one initial public offer this year, One Great Studio. 138 Student Living recently launched an initial public offer which was scheduled to close the first week of October. However, it was extended several weeks to allow for greater uptake.

Rose noted that the success of NCB’s APO would be a clear indication of investors’ mood towards the stock and the overall market.