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Air conditioning company CAC to launch IPO December 16

Published:Tuesday | December 8, 2015 | 8:36 PM

Air conditioning and energy solutions company CAC 2000 Limited will offer more than 29 million shares or around 22.5 per cent of the company via the junior stock market by year end.

The initial public offering, which aims to raise $120.5 million at $4.89 per share, will be launched by year end with VM Wealth Management as lead broker. Only half of the shares under the offer, 14.5 million, will be available for public subscription. The rest have been assigned to key groups.

The offer opens December 16 and closes a week later on December 23.

CAC, which operates in Kingston and Montego Bay, and distributes brands such as Carrier, LG, Mitsubishi Electric, Fujitsu, Carlyle, Honeywell, Sanyo, Emerson, Mitsubishi Electric, TopTech and Fasson.

The company is primarily owned by Steven Marston and Gia Abraham through a holding company called Caribbean Air Conditioning Company Limited (CACL).

Full take-up of the offer will reduce CACL’s holdings in the company from 65 per cent to just over 50 per cent. It would also cut the holdings of Colin Roberts from 25.68 per cent to 19.9 per cent; Louis Chin from 6.18 per cent to 4.79 per cent and Howard Chin from 3.09 per cent to 2.4 per cent.

CAC says it is seeking fresh capital to position for new business that is opening up in the hotel sector and other markets.

The company reports that its revenue base is currently around $823 million while its assets are estimated at $544 million.