Kremi IPO oversubscribed
The initial public offering for Caribbean Cream Ltd (CCL), operating as Kremi, closed on Wednesday, nine days ahead of the deadline for subscriptions because it was oversubscribed.
The offer, which opened on April 25, was expected to be closed on May 10. The company will be allotting more than 75.7 million shares to stock market investors.
Of those, some 49.75 million shares were offered to the public at J$1, while 26.14 million were reserved for employees, directors and key individuals, some at discounted prices of J$0.85 to J$0.95 per share.
Stocks & Securities Limited (SSL), lead broker and arranger for the IPO, said that all applicants will be advised of the basis of allotment within three business days, in accordance with the rules of the junior market of the Jamaica Stock Exchange.
"The success of another manufacturing company to raise capital bodes well for continued growth of the sector and Jamaica," SSL said in a release. "We here are at SSL are elated to be able to bring it to fruition," said Lamar Harris, manager of investment banking at Stocks & Securities.
The IPO aims to raise J$75 million to assist CCL in its expansion plans to deepen its presence in the ice cream business.
CCL recently signed a $13-million deal with Sandals Resorts International as the sole supplier of bulk ice cream to its Jamaican properties. It has also brokered a successful transaction in getting its products into Jewel Resorts.
The company is a manufacturer and distributor of bulk ice cream products. It produces 20 flavours of Kremi ice cream in three-gallon, 1.5-gallon and quart sizes, as well as three flavours of ice-cream cake novelties. It also distributes the Flavorite brand of frozen novelties from Trinidad.