Chemical products trader to list on junior market

Paramount Trading Limited, a trader of chemical products, announced its intentions to list on the junior market via an initial public offering (IPO) before yearend.

Paramount will float 20 per cent of the company. Details of the offer were not available.

Companies listed on the junior market are allowed to raise equity capital of between J$50 million and J$500 million.

Hugh Graham, managing director of Paramount Trading, which has been in operation for the last 21 years, said he intends to use the funds for expansion of the business, having identified an opportunity to expand into the manufacturing of finished chemical products for the firm's existing clientele in Jamaica and the wider Caribbean.

Paramount currently imports industrial, technical and food-grade raw materials to supply the manufacturing sector. The company operates from two locations with combined warehouse space in excess of 56,000 square feet.

Its main operation is at Waltham Park Road in Kingston.

Mayberry Investments Limited (MIL) will act as financial adviser and lead broker for Paramount Trading's IPO.

"This is our eleventh (junior market) IPO and this continues our focus on bringing opportunities to market that showcases the strength of Jamaican entrepreneurs," said Gary Peart, chief executive officer of MIL.

The junior market already has 13 companies listed, of which five are from the manufacturing sector.

Other pending IPOs include Purity Bakery and Tracks & Records.

sabrina.gordon@gleanerjm.com