The initial public offering of Consolidated Bakeries Jamaica Limited, which operates under the brand name Purity, was oversubscribed by Wednesday.

Applications were four per cent above the J$97 million the company aimed to raise.

The company offered 51,805,171 ordinary shares to the market at a price of J$1.88 per share on Tuesday, November 13.

The offer closed the next day having received in excess of 470 applicants.

Final allotment of shares will be within three working days of the close of the offer, or by Monday. Purity plans to list on the JSE Junior Exchange.

According to the lead broker on the offer, Stock and Securities Limited, the net proceeds from the IPO will now help Purity to significantly build out its brand on the local market.

More specifically, the funds will be use in part to help improved production by retooling, improved distribution by installation of computerised route-management systems, and strengthen the company's balance sheet by increasing working capital and reduce debt levels.

Purity is a 57-year-old brand.

business@gleanerjm.com