Fosrich prices junior IPO at $2
Electrical and lighting company FosRich plans to raise $200 million from a share float on the junior arm of the Jamaica Stock Exchange in December.
The offer is priced at $2 a share for general public. It's being brokered by Stocks & Securities Limited.
FosRich Company Limited will issue a maximum of 100 million new shares with the offer bringing its total shares to 502 million units. The founders, Cecil and Marion Foster, will hold 80 per cent or 402 million units after the invitation while the general public will get to buy roughly 10 million shares or 2.0 per cent of the company in the IPO.
FosRich plans to develop and launch a new line of industrial products as well as to increase working capital, from the proceeds of the IPO, according to the company's prospectus.
The financial information disclosed in the prospectus indicates that FosRich continues grow revenue from large projects and in-store purchases. However, profit over the period January to September 2017 was estimated at $22.5 million, down from $37.9 million earned in the prior reporting period.
The figures were in line with the historic trend detailed in the prospectus, where FosRich's revenues more than doubled over five years - ranging from $660 million in 2012 to $1.56 billion last year - while profit vacillated in the period.
Within the five-year period, its low-point was $2.9 million of profit in 2015, while its high point was $50 million in 2013.
The company opened its doors in 1993 and built a brand that operates from three locations in Kingston, Montego Bay, and Mandeville. Recent projects undertaken by FosRich include retrofitting the stadium lights at Sabina Park in conjunction with the Urban Development Corporation and Philips. It also supplied LED street lights to the Jamaica Public Service Company in conjunction with Philips.
FosRich is made up of three principal business segments FosRich Electrical, which provides breakers, copper wires, energy-saving bulbs, ceiling fans, and other products; FosRich Lighting, a supplier of interior and affordable, decorative lighting products since 2010; and FosRich Energy, which deals in energy-saving lighting options, and supplies and installs solar water heaters, solar photovoltaic systems, lighting, LED lighting and induction lighting products.
The IPO will be open for subscription from December 4-11.