Stationery company SOS aims to list on JSE
Stationery & Office Supplies Limited (SOS), a family-owned company that has been around for half-a-decade, is planning to float shares in the company on the junior market of the Jamaica Stock Exchange.
The company wants to tap the market for equity capital to push forward with new expansion plans, said SOS director for logistics and warehousing Allan McDaniel on Friday.
McDaniel avoided comment on the timeline to go public, and the amount of funds the stationery company aims to raise through the IPO. However, the company wants to list this year.
The process requires approval from the Financial Services Commission, which has to sign off on any listing aspirant's prospectus.
SOS is a large supplier of office and stationery equipment to corporate entities in the main, with hubs in two cities that serve markets in Jamaica and the Caribbean region. The company operates a 35,000 square foot warehouse and showroom from its 23 Beechwood Avenue headquarters; and a second operation in Montego Bay spanning 3,000 square feet of space.
"Our clients tend to be corporate, including banks, call centres and other types of businesses. We have about 3,000 credit accounts, but also we can supply individuals," McDaniel told Gleaner Business.
The 50-year-old family business was founded and is led by David McDaniel and wife Marjorie McDaniel.
The two are the sole shareholders, with David holding 1,400 shares and Marjorie 600 units, according to Companies Office of Jamaica records.
Second generation McDaniels are also part of the management team. In all, there are six family members assigned to various management positions, who oversee a staff of around 100.
"Listing on the junior market of the JSE is a step that we're looking forward to, not just from a financial perspective, but also for what it means to other companies," said founder and managing director, David McDaniel.
"That a Jamaican company, with local management, can stand the test of time and not only survive, but thrive," said David in a prepared release.
The SOS initial public offering is being brokered by JN Fund Managers, itself a new addition to the stockbrokerage community.
SOS has also retained securities experts MH&CO Attorneys-at-Law, as its legal advisers for the IPO and listing.
The stationery company is not saying what its expansion plans entail until it hurdles the regulatory requirements.
It, however, touted its culture as one focused on social and environmental issues, and a business that believes in the triple bottom line - people, planet, profit - as well as charitable giving.
"At SOS, we have engendered a culture of giving back ... ," said Allan, while rolling off associations with different entities.
"We've invested a lot in ensuring that the company operates in a socially responsible manner. This includes offering internationally compliant shredding services with the shredded product being exported and sent to recycling mills overseas, and installing a 75kw solar photovoltaic system on the premises," he said.
"In addition to being better for the environment, it has also reduced our reliance on JPS by 80 per cent."