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Corrpak to list, aiming for $120m from IPO

Published:Friday | June 3, 2016 | 12:00 AMTameka Gordon
General Manager of Corrpak Jamaica, Vanburn Mitchell.
Boxes produced by Corrpak Jamaica at its factory in Kingston.

Corrpak Jamaica Limited is looking to list on the local stock exchange by the end of June and has secured the services of financial adviser Mayberry Investments to arrange its initial public offering.

General Manager of Corrpak Jamaica Vanburn Mitchell told the Financial Gleaner the company hopes to tap the market for at least $120 million, which is earmarked for equipment and plant upgrades amid preparations to commence exports to Caribbean markets.

Suriname, Guyana and Belize are immediate targets.

Mitchell projects a 20 per cent lift in revenues within the next year and a half with the additional capacity that the IPO proceeds are intended to finance.

The box maker supplies packaging to other companies. It employs 95 workers but plans to add "another 15-20 employees," in the next two months if the expansion plans are implemented, Mitchell said.

Back in 2015, the company had reported an acquisition of property formerly used to operate a gas station and adjacent to its Marcus Garvey Drive-based plant to grow the business, but Mitchell clarified Thursday that the site was eventually leased with the option to buy.

"The agreement with Total is they are willing to sell it at this point, so we are going to purchase that," he said.

Corrpak purchased another property located "just behind the gas station" in March and is developing a 5,000 square feet warehouse on that site.

The company last added 15,000 square feet of warehouse space in 2015, then growing its total holding to 46,000 square feet.

"The raw material that we use is very bulky so, if we are going to be pursuing additional business, we are going to need additional warehousing for both the raw material and finished goods," said Mitchell.

"We are also trying to free up of factory floor space because, currently, we have raw material that we have stored on the factory floor because we don't have to the space to store those," he said.

Corrpak manufactures corrugated boxes. The company was established in 2004 by Raymond Chang and executive chairman Howard Mitchell.