Durrant Pate/Contributor

First Rock Real Estate Investments has commenced its long-awaited shares buy-back programme, which was initiated last Friday (September 9).

The Jamaican real estate development company purchased a total of 100,000 of its shares on the open market, under its share buy-back programme at a price of US$0.04. The share buy-back exercise was delayed for six months when it was supposed to commence during the first quarter of this year but instead became available on September 1, 2022.

First Rock, which is in the business of real estate equity and development will be buying back the shares on the open market. The open market share buyback exercise should not exceed 10 per cent of the company’s capital, which amounts to US$3.4 million, as at March 30, 2022.

The shares buy-back exercise “Is intended to be used as a tool for First Rock Real Estate Investments Limited to unlock shareholder value over time and will be funded by cash on the company’s balance sheet. The execution of the shares buy-back initiative will be communicated to the market in due course”.

Having been trading below its initial public offer price of J$16.67 and US$0.12 two years ago, First Rock is seeking to unlock value by returning cash to shareholders, who want to exit the investment. In the converse, with remaining shareholders First Rock can increase earnings per share, all else being equal.

In trading yesterday, First Rock’s share price held firm with over 140,000 units exchanging hands at a price at US$0.04 per share.