A new initial public offer (IPO) emerged on the weekend from a firm in Ontario Canada, EquityLine Mortgage Investments Corporation that wants to list on the Jamaica Stock Exchange (JSE).
The corporation will attempt to raise US$10 million by issuing 5.0 million preference shares at US$2.00. The company will start its roadshow on December 4 with the offer opening on December 10 and closing on New Year’s Eve. Sagicor Investments will act as the lead broker for the offer.
The investment objective of the corporation is to acquire overseas mortgages and maintain a portfolio of mortgages consisting primarily of residential non-conventional mortgages and Alt-A Mortgages that generates attractive returns relative to risk.
In 2017, Equityline Financial funded over C$50 million (US$38 million) in private mortgages and as of the date of this prospectus has existing client book of mortgages with a book value of over C$230 million (US$175 million, the company said. The initial mortgage portfolio offers a return on annual interest rate of 10.01 per cent.
“The corporation intends to focus primarily on urban markets in Ontario, which the corporation believes are typically more liquid and provide less volatile security for mortgage loans. Although the Corporation intends to focus its investment in Ontario, the Corporation’s Asset Allocation Model permits the Corporation to in mortgages across Canada, if the Manager determines it to be advisable,’’ said the corporation run by director and president Sergiy Shchavyelyev.
The corporation has been created to provide investors with an opportunity to invest indirectly, by holding shares of the corporation, in mortgages selected by the manager in accordance with the corporation’s asset allocation model and its investment objectives and restrictions.
Presently, Equityline Financial offers mortgage brokering services, mortgage lending and private mortgage loan administration services. It is licensed as a mortgage brokerage as well as a mortgage lending administration company by the Financial Services Commission of Ontario.