Jamaica’s port authority seeks broker for BPO IPO listing
KINGSTON, JAMAICA — In a strategic move to divest its business process outsourcing (BPO) assets, the Port Authority of Jamaica (PAJ) is looking for a brokerage firm to facilitate its listing on the Jamaica Stock Exchange by the end of the year.
This initiative follows the government’s approval last October to establish an enterprise team dedicated to the divestment, a plan that has been in the pipeline for the past two to three years.
The yet-to-be-named company, currently referred to as ‘Newco,’ is expected to make its market debut around December, following an initial public offering (IPO) of shares to investors.
The PAJ, a pivotal entity in the development of Jamaica’s outsourcing sector for nearly four decades, aims to select a broker by May, allowing seven months to complete the listing or privatization process.
Newco will manage approximately 852,276 square feet (sq. ft.) of rentable BPO space, combining the PAJ’s own 611,562 sq. ft. with an additional 240,714 sq. ft. managed on behalf of the Factories Corporation of Jamaica. These assets are strategically located in special economic zones in Montego Bay and the Portmore Informatics Park, positioning Newco as a significant player in the BPO industry.
The divestment marks the third government asset to be listed on the Jamaica Stock Exchange in recent times, following the successful listings of TransJamaican Highway in 2020 and Wigton Windfarm in 2019.
The PAJ is seeking a broker with a proven track record, requiring at least five IPOs or sale transactions worth $3 billion or more.
This move is part of the PAJ’s broader strategy to stimulate private sector investment in the BPO industry, which has seen significant growth and de-risking in recent years.
The Port Authority’s BPO assets, part of its estimated $82 billion in total assets, play a crucial role in this sector’s development, from the garment industry in the 1980s to the current focus on knowledge process outsourcing.
