NCB confirms upcoming APO will not fund dividends Loop Jamaica

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44 minutes ago – Updated

Interim NCB Financial Group CEO Robert Almeida (centre) during a one-on-one discussion with journalists after the company’s investors briefing in August 2023.

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NCB Financial Group Limited (NCBFG) announced last week its intention to issue additional ordinary shares by Additional Public Offering (APO) to issue up to 300,000,000 new ordinary shares.

The funds generated from the APO will be allocated towards decreasing debt and interest costs, while also fortifying the company’s capital position.

NCBGF emphasised that the proceeds will not be used to pay dividends. Dividends are paid from the profits of the company.

“The decision to issue additional shares forms a part of NCBFG’s capital and cost optimisation strategies designed to maintain financial strength and soundness and accelerate growth, which should enable a return to consistent and sustainable dividend payments to its shareholders (both existing and new),” NCBFG said in a press release.

NCBFG previously outlined that it has sized and initiated action on annualised savings in excess of $8 billion, which translates to J$3.24 per share.

“NCBFG remains a strong diversified regional franchise with a strong track record of performance and value creation. With our capital and cost optimisation strategies well underway, our shareholders can trust our commitment to both rewarding them and maintaining strong fiscal responsibility,” stated NCBFG interim Group CEO Robert Almeida.

The APO is one among a set of initiatives underway to achieve these goals and build NCBFG’s position as a financial fortress, Almeida added.

Further details about the share price, specific duration and size of the offering will be advised in due course by way o af prospectus.

Additionally, details pertaining to the extraordinary general meeting which was previously announced will be communicated in a subsequent notice.

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