Lasco's IPO oversubscribed in three minutes

The over 269.2 million shares offered on the market by three of Lasco's companies in an initial public offering yesterday were oversubscribed in three minutes raising some $650 million, beating the targeted $415 million that was set.

Lead broker and financial adviser to the offer, Mayberry Investment Limited (MIL), announced on Wednesday that 2,000 applications were received in excess of the 269.2 million shares valued at $2.50 across all three companies, with majority of the applications being received from retail investors.

"MIL is advising the public that due to the overwhelming response to the share offer, the allocation will be done on a proportional basis. All Applicants should note that they may receive a smaller number of shares than they have applied for, as all three companies reserve the right to allocate on a proportional or other basis to be determined in its sole discretion," said the company's press release.

"The management and staff of the three Lasco companies express their gratitude to all investors. Those investors who were not able to participate in the initial public offer will have the opportunity to purchase shares in the Lasco-affiliated companies on the Jamaica Stock Exchange once the listing is approved," the release further stated.

Restructuring

Prior to the IPO, Lasco restructured its operation trimming its group of eight affiliated limited liability companies down to four, three of which Lasco Manufacturing, Lasco Distributors Limited and Lasco Financial Services Limited are now to be listed on the Junior Stock Exchange.

Of the three companies, Lasco Distributors Limited was seeking to raise equity of $150 million to $190 million, Lasco Manufac-turing Limited was going after $180 million to $230 million and Lasco Financial Services wanted to raise between $50 million and $70 million.

Lasco plans to invest approximately $300 million of the funds raised to expand its manufacturing arm at White Marl in St Catherine. The company also plans to grow its financial arm through expansion into the Eastern Caribbean and Europe.

Lasco Manufacturing, formerly Lasco Food Successors Limited, produces a range of food items and beverages, and packages milk products. It is also responsible for the export distribution of the complete Lasco range of products which includes milk and soy.

Lasco Financial is a consolidation of the company's remittance, cambio, financial and property-services businesses.

The three companies are expected to be listed on the junior exchange within three to four weeks.

sabrina.gordon@gleanerjm.com