GEORGE
THE $1.85 billion private placement of Supreme Ventures Limited (SVL) shares attracted over $5 billion in support when it opened yesterday, said company chairman Paul Hoo.
Opened at 9 a.m., the placement was closed by 10.23 a.m. due to the massive support. The gaming giant was offering 500.7 million shares at $3.70 each to 50 investors.
"The entire SVL team feels proud that so many persons share our vision for the future and were willing to share ownership in the company," Mr. Hoo said in a statement yesterday. An 18.99 per cent share in the company was on offer.
AIC Financial Group arranged the placement in Trinidad and the Eastern Caribbean while NCB Capital Markets Limited took charge in the Jamaican home market. The shares are being allocated on a first come first served basis, with emphasis given to strategic relationships of the company and after-market considerations, SVL stated.
This private placement is preliminary to an offer to the general public by November. The funds will be used to cut the company's debt and help fund its expansion.
EXTENDING ITS REACH
"We are extending our range of services," the company's president and chief executive, Brian George told a press briefing at SVL's New Kingston headquarters last Friday. The company is on an aggressive growth path that is extending its reach in the gaming market.
Formed by the late Peter Stewart, Paul Hoo and Ian Levy, SVL started operating in June of 2001 with its 'Cash Pot' and 'Lucky5' lottery games, it soon added a third game, 'Dollaz!' in 2003. The year 2003 was also a good one for the company as it bought out its main rival, Jamaica Lottery Company (JLC) in December. That gave it the popular 'Lotto' along with other revenue streams from the JLC.
"The acquisition allowed us to diversify and consolidate within the industry," Mr. George said. Supreme Ventures now gets 76 per cent of its revenues from the 'Cash Pot' game, while before the JLC acquisition, it had been getting 94 per cent of its revenues form this game.
The four-year-old company has projected revenues of $15.8 billion this year and plans to keep that growing at a healthy pace.
With a staff of 250, a special arrangement will be made for them to acquire shares at the same time as the public offer.
The $3.70 share price in the private placement is 30 per cent less than the level at which the stock will be offered to the wider public by November.
