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CEIBA Investments – Unique access to Cuba

18
2018
September

CEIBA Investments – Unique access to Cuba

180917 CBA IPO note QD

CEIBA Investments Limited (CBA) is an existing investment company focused on real estate investments in Cuba, with a pre-IPO NAV of $175m (approximately £135m). CBA is the pre-eminent foreign investor in Cuban property. Its directors believe there is a window of opportunity to invest in expanding its portfolio while competition from US investors is curtailed by their government’s policies.

CBA is targeting (but not guaranteeing) total shareholder returns of between 12.5% and 17.5% per annum (in US dollar terms) and a 4% dividend yield on the issue price.

CBA is listing its existing shares on the specialist fund segment of the London Stock Exchange and is aiming to raise additional gross proceeds of a minimum of £30m and a maximum of £100m. The funds will be used to repay a bridge loan, provided by the principal shareholder to expand the company’s asset base in December 2017, and finance further investment in its portfolio (details of which are provided on page 9). Investors in CBA will gain exposure to a well-established and revenue generating portfolio, and a range of projects offering the potential for NAV accretion and enhanced revenues.

Existing investors not selling shares at IPO

None of CBA’s existing investors is looking to sell shares in the IPO. The two largest shareholders and the management team have indicated that they will subscribe for additional shares in the IPO and have agreed to be locked in for 12 months from the date of admission. Other shareholders have agreed that, for a 12-month period, they will only sell shares subject to orderly market restrictions (see page 17).

The details of the share issue, including the risk factors that investors should take into consideration, are more fully described in the prospectus published on 17 September 2018 and we urge readers to read this before making any investment decision.

CBA : CEIBA Investments – Unique access to Cuba

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