Access Financial Services Limited, provider of micro, small and medium-size business loans and personal loans, will be seeking to raise $100 million in its initial public offering of 5,490,199 ordinary shares set for October 14.

The company has issued capital of 21.9 million shares, with CEO Marcus James holding the majority 51 per cent while Mayberry Investment Limited owns 49 per cent.

The public offering, at full takeup, will dilute their holdings to 41 per cent for James and 39 per cent for Mayberry.

Of the 5.49 million ordinary shares on offer - which represents 19 per cent of the company - 164,706 units have been reserved for priority applicants, including directors and managers.

Of the total reserved shares, 54,902 will be allocated to the chairman - a position now held by Brian Goldson - while 105,404 will be offered to employees, including senior managers, at a discounted price of $14.58 per share.

The other 4,400 reserved shares will also be made available to employees at the discounted price of $1 per share to be sold in blocks of 50.

Shares offered to the public

The remaining 5,325,493 shares will be offered to the public at $18.34 per share.

Should any of the 164,706 reserved shares not be taken up by the priority applicants, they will be made available for subscription in the general pool at $18.34 per share.

The offer is expected to close October 20 and the stock listed on the Junior Stock Exchange within a week of the closing date.

"Listing on the Junior Market of the JSE will raise its profile while allowing it to raise further funds in order to remain competitive and to fulfil its strategic plans to become the leading provider of financial services to working individuals, micro, small and medium-size businesses," stated the company in its prospectus posted on the JSE. website.

According to the company, the greater part of the proceeds from the IPO will be used to fund the expansion of its loan portfolio with the smaller part of the proceeds to be used to support the company's marketing of its current branches.

Access Financial began operation back in 2000 and over time has expanded offices to eight across the island, and was valued in assets at $445 million at December 2008.

Since inception, it has disbursed in excess of $2.5 billion in loans.

sabrina.gordon@gleanerjm.com