Project STAR on Thursday made history by becoming the first social IPO in the Caribbean. 

STAR, which stands for Social Transformation and Renewal, is a social and economic community transformation programme. The project was created by the Private Sector Organisation of Jamaica in partnership with the Jamaica Constabulary Force.

The non-profit organisation is looking to raise $100 million to help fund its intervention and outreach programmes in vulnerable and underserved communities across the island.

Speaking on Taking Stock with Kalilah Reynolds, Project Director of STAR, Saffrey Brown, explained that STAR began operations last September and currently serves communities in East Kingston, May Pen and Savanna-la-Mar.

“One of the things about Project STAR is that it is about building out a framework that allows the community to identify what the issues are in that community. Its then to develop and deliver the specific strategies for that community,” Brown said.

“So what STAR is doing in East downtown Kingston it’s going to be different to what STAR does in May Pen. This is important to make sure that the interventions are specific to what that community requires,” she added.

Co-chair of Project STAR, Keith Duncan, said the organisation targets historically underinvested communities with poor long-term outlooks.

“We’re focused on communities where the social outcomes are weak, the educational results are weak, and the unemployment rate is much higher than the national average. 

Also, the infrastructure in some of these communities is deteriorated and the crime levels are significantly higher than the national average, which is already high,” Duncan said.

According to the Project STAR team, the organisation will need approximately $400 million to execute its initiatives.

What is the Social Stock Exchange?

Jamaica Stock Exchange Chairman, Julian Mair, said that the social IPO is an excellent way for Jamaicans to invest in the island’s development.

“The Jamaica Social Stock Exchange is targeted as being a platform for non-profits to come to raise money. It creates a very transparent platform for people to receive reporting and have accountability for money that has been raised,” Mair said.

He noted that the platform is being used differently for Project STAR.

“For Project STAR we’re actually doing an IPO of social shares and it’s a first in Jamaica, the first in the Caribbean,” he said.

He explained that purchasing shares in the social IPO can be considered a donation. Investors will not receive any monetary return from the investment, and the shares will not be tradeable. 

“Your giving money to help fund the initiative,” he said.

However, Mair noted that investors will be able to see exactly where their money is going as Project STAR will be required to present financial statements and reports about how the money is used.

“We expect that is going to be very successful and it will be a very new and innovative

way to raise funds for non-profits,” he said.

“It ends up putting a social share in the portfolio of every investor and with that share comes all the accountability and reporting from any listed stock,” he added.

Project STAR IPO

The IPO opened on June 22 and should close on August 18. All shares are going for $1 and can be purchased through any licensed investment broker.