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Innovative Energy Group Limited, IEG, formerly known as Ciboney, more than doubled its share capital during the quarter ended May, resulting in the public float falling below the 20 per cent minimum required by the Jamaica Stock Exchange for a listed company.
Innovative Energy, which has transformed into a renewable energy solutions provider, described the situation as temporary and pledged to restore public ownership in due course.
The group increased its total shares to 1.3 billion units from 526 million, leading to a change in its ownership structure. IEC Energy Company Limited, the largest shareholder, expanded its holdings from two-thirds to over four-fifths of total shares, which is above the 80 per cent threshold that operates as a corollary to the 20 per cent rule.
“The overage is temporary and came about in the issuance of the new additional shares when IECL was purchased by IEG. The JSE is therefore aware of the action plan,” IEG Director Wayne Wray said, in response to the Financial Gleaner.
He said the additional shares would be offloaded to new shareholders and Innovative Energy’s staff under an employee share ownership plan.