By McPherse Thompson, Assistant News EditorTHE JAMAICA Lottery Company (JLC) has postponed its decision to make a public offer and list its shares on the Jamaica Stock Exchange (JSE) this month because of what it says is uncertainty in the local financial market.
"We are looking at the financial climate to make a proper decision as to when is the best time to go forward with the public listing," said Sonia Davidson, the JLC's public relations and promotions manager.
Mrs. Davidson said the company was concerned about all aspects of the financial market at this time, given the experience of the last company to have make a public offer and the fact that such a measure was also being contemplated by the gaming company.
She said the JLC felt the market "is not conducive right now and therefore it's better to hold off and wait."
PUBLIC LISTING
The last public listing on the JSE was Capital & Credit Merchant Bank, which, in April, offered 180 million shares to the public at $5 per share. Despite a prolonged promotional campaign, investors were slow in taking up the offer, forcing the company to extend the initial deadline. Later, Roy Johnson, chairman of the JSE, commended Capital & Credit for its decision to issue shares and to list, despite the tight liquidity in the economy at that time.
Capital & Credit's public offer and listing followed an issue just four months before, in December, last year, by Jamaica Money Market Brokers (JMMB), the first public offer in seven years. JMMB's 234.1 million shares was oversubscribed by 37 per cent, prompting the company to issue an additional 24.1 million.
PAPERWORK
Mrs. Davidson said the JLC has not yet applied the JSE for listing, but the necessary paperwork has been prepared by the registrar.
The Government had made it a requirement that the JLC list on the JSE, and since 1996 the company has been announcing its intent to do so. However, the company said adverse market conditions have prevented it from following through.
The JLC operates the twice a week multi-million lottery, the smaller three-way drop pan and Pick 3 that are played twice daily Mondays to Saturdays and scratchers subsidiary games.
In addition, its $500 million investment in a technological upgrade has allowed the company to run virtual telephone minutes from its lottery terminals for the island's cellular providers Oceanic Digital Jamaica and Digicel, with Cable & Wireless Jamaica set to come on stream in the next few weeks.
SPORT DEVELOPMENT
Mrs. Davidson said the JLC, which helped to establish the Sports Development Foundation in 1995 with a $34 million contribution, has since handed over more than $1 billion as part of its requirement to assist in sport development, as well as more than $65 million each to education and health.
The JLC currently employs about 1,200 people at its 600 locations islandwide.
