TRIP IPO to be Announced

NCB Capital Markets is expected to announce an Initial Public Offering (IPO) in the coming months for its new Tourism Response Impact Portfolio (TRIP).

TRIP is the fourth fund being managed under NCB Capital Market’s Stratus Alternative Investments, which provides investors with a broad range of non-traditional high-yielding alternative investment solutions. 

It is designed to meet the needs of businesses in the region’s tourism sector, by acting as a bridge between investors and businesses in need of financing.

10% expected return on investment 

In an interview with Kalilah Reynolds, Chief Operating Officer at NCB Capital Markets, Tracy-Ann Spence,  said the fund was seeded about two months ago, and is already generating returns in line with their expectations.

According to a news release from NCB Capital Markets, TRIP is expecting higher returns than traditional wealth products such as stocks and bonds.

“The target IR [investment return] for the fund is 10% per annum on US dollars, and so in terms of the pipeline and deals that we’ll be looking at in the future, would be north of 10%…so investors can expect those types of returns.  Even the current pipeline that we’re looking at, we have IRs ranging between 11% and 20%,” said Spence.

She added that they believe now is an opportune time to invest in tourism assets.

“Because of what’s been happening in the industry, it is actually an opportune time to get in at current prices for these assets, and then once the market recovers, then pricing would improve,” she explained.

According to the COO, the aim of TRIP is to assist tourism players with retooling their businesses, especially after the impact of the COVID-19 pandemic. 

“We took a look at what was happening in the market.  We know that tourism is very relevant to Jamaica, to the Caribbean on a whole, and so we said we should do something to help the sector,” she added.

Main Market Listing

According to Spence, NCB Capital Markets expects to have the TRIP IPO out in a couple of months, subject to regulatory approval.

TRIP would be listed on the main market of the Jamaica Stock Exchange.  Due to regulations, the COO was unable to state how much funds they would be seeking; however, a main market listing indicates that they would be seeking to raise a minimum of J$500 million.

The funds would be invested in primarily medium to large tourism businesses, although Spence indicated that they also have some smaller businesses under consideration.

“We’re looking at maybe an average of ten businesses right now in terms of the active pipeline.  Of course, depending on the volume raised, when we do actually come out with an offer for funding, then we may look at more,” she added.

Spence says assets across the tourism industry, including hotels, attractions, and businesses that rely heavily on tourism, are being targeted as part of TRIP. 

Investments may be made in several forms, but the fund is primarily targeting debt issues, while equity is expected to play a smaller role.  

Stratus is currently considering businesses for investment, so interested businesses in the tourism sector can contact 1(876) 960-7108 or email ncbcapinfo@jncb.com

Categories: Featured Episode