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IEC Energy targets growth

Company changes name from Ciboney; considering APO in 2024

Published:Friday | December 8, 2023 | 12:06 AMAvia Collinder - Business Writer
Nigel DavyFile
Nigel DavyFile

Nigel Davy, executive chairman of newly named company Innovative Energy Group (IEG) Limited, says they will be focusing on mergers and acquisitions as they seek to improve their standing in the energy sector.

The business’ core functions, he says, includes the provision of services for sustainable energy, engineering, construction and real estate development, and they will be seeking to raise additional capital.

Among its options to raise capital will be an additional public offer (APO) in the new year for the company which was formerly known as Ciboney Limited, a dormant entity listed on the main market of the Jamaica Stock Exchange (JSE).

However, it had its name changed to IEC Group on December 6 at the company’s annual general meeting (AGM).

In June 2023, IEG acquired 72.11 per cent of shares in Ciboney from the Financial Sector Adjustment Company (Finsac), the previous majority shareholder.

The company then made an offer for the minority shares at five cents per share to other shareholders, aiming for up to 80 per cent of shareholding to retain its listing.

Addressing a virtual audience at the AGM on Wednesday, Davy stated, “Our thrust is to grow the business through mergers and acquisitions, and employ a strong and experienced team to efficiently and effectively manage our business.”

He said that the company was “agnostic as to the size of transactions that we will pursue, or locations. We are looking at investments in Jamaica and the region, as long as they meet the criteria of our board.

“Our primary focus is sustainable energy, engineering, construction, and real estate development across sectors. However, we are equally bullish on potable water production, wastewater development and other sectors that show potential for sustainable growth. Where we do not have the expertise, we will either acquire companies, (do) joint ventures, or hire the expertise.”

Davy stated that the group is currently exploring several opportunities, noting, “based on where we are, we hope to close one or more of these transactions during the first half of 2024”.

The executive chairman also indicated that the company plans to respond to the proposal by the Generation Procurement Entity for up to 100 megawatts of Jamaica’s renewable energy capacity, or for 10 per cent of the island’s renewable capacity.

He said the company is generally looking at both residential and commercial projects to scale.

“Globally, renewable energy is becoming cheaper by the day… I am excited both for Jamaica and our company. Jamaica is well positioned to transform its economy by utilising more renewable energy. It will make our economy more resilient. Our company will play an important role in this transition. The Government of Jamaica has a goal of 50 per cent renewable energy by 2030. We will seek to collaborate with the Government and the utilities,” he commented.

Stating that capital would be needed for the planned projects, Davy outlined: “We will be going to the market to raise capital via equites, APO, private equity, green bond market, and our commercial and development banks. Our board will provide guidance.”

Name change

Resolutions were passed at the AGM to change the name of the company to Innovative Energy Group Limited, while shareholders approved the resolution to increase the maximum number of shares that the company is authorised to issue from 546,000,000 to no maximum number of ordinary shares of no-par value.

The existing articles of association and memorandum of association have been cancelled, and new ones adopted, and Wayne Wray, Kyle Davy and Conley Salmon were re-elected as directors of the company.

Non-executive directors already appointed were Donald Patterson and Albert Gordon, effective October 9, 2023.

Company head Nigel Davy is described as an entrepreneur and energy professional with over 30 years of experience in the energy sector and a qualified aeronautical engineer and commercial pilot who holds certifications in electrical power generation management, power systems harmonics, and power plant management.

Ciboney was a shell company which Finsac marketed to entities interested in listing on the main exchange by introduction. Davy noted that since the acquisition, its share price has doubled.

The company previously held properties in the tourism sector and was formerly the major investor in Sandals Ocho Rios and Ciboney hotels. Ciboney’s last property, land in Culloden, Westmoreland, was sold to a company called Green Forrest Limited for $250 million in December 2017.

With high levels of debt in the 1990s, properties were sold off and debts paid to Finsac. At year end May 2023, the company, which did no business for years, had losses of $280 million related to its business.