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The largest shareholder in Innovative Energy Group Limited, IEG, will start selling down shares over the next six months, starting in August, to restore compliance with Jamaica Stock Exchange rules governing public ownership of a listed company.
“The sale of these shares will commence within 10 business days of this notice and is expected to be completed within six months, or such extended period as may be approved by the Jamaica Stock Exchange,” stated IEG in a market update that was posted on the Jamaica Stock Exchange on Monday.
Innovative Energy Group’s shares, which are listed under the symbol ENERGY, will be sold in the ordinary course of trading on the exchange, it said. On Monday the ENERGY shares traded down nearly four per cent to settle at $1.21. It traded flat on Tuesday.
The largest shareholder in IEG is IEC Energy Company Limited, which currently holds 83.9 per cent of IEG’s issued share capital, which is above the required threshold. IEC is controlled by a St Lucia-based entity, along with Nigel and Jennifer Davy.
IEC plans to sell enough shares, about 51.74 million units, to get below 80 per cent ownership. The move aims to bring public float back to the mandated 20 per cent minimum under Rule 402B(i), thereby averting potential violations such as fines or delisting.
IEG currently qualifies for an exception due to its shareholder count and trading volume, and its management has emphasised its commitment to long-term compliance.
“Notwithstanding its qualification for the exception, it is intended that the 20 per cent public float be restored,” it said.
The overage followed a recent share capital increase, which saw IEG more than double its issued shares from 526 million to 1.3 billion units in connection with its acquisition of IEC SPEI Limited. That transaction elevated IEC Energy’s stake above 80 per cent, compressing public ownership and prompting regulatory scrutiny.
Director Wayne Wray previously told the Financial Gleaner that the reduction was temporary.
The ENERGY shares have traded steadily between $1.24 and $1.26 following the increased share capital and dilution of holdings. The company also posted annual results with $76.3 million in profit on $235.7 million in revenue, and it has made gains in electric vehicle sales and launched a new crowd-based commission sales team.
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