Marcella Scarlettt, Business Reporter
Caribbean Flavours and Fragrances, manufacturer and supplier of colourings and flavourings, will be seeking to raise J$50.6 million from subscription for up to 22.48 million shares in an initial public offering (IPO).
If successful with the offer, which opens on Wednesday, September 25 and closes on Wednesday, October 2, the company plans to list on the Junior Market of the Jamaica Stock Exchange (JSE).
The issue is to be offered at J$2.25 per share.
Less than half of the offer or 9.89 million units are being reserved for sale to the general public.
The remaining 12.58 million shares will be reserved for subscription by various groups - 899,200 for directors and mentors, 499,600 for senior managers and employees, 6.74 million for key partners, suppliers and customers; and 4.49 million for Mayberry Investments, the company's financial adviser and lead broker. JN Fund Managers will also assist in raising the money.
In the offer document, the company said proceeds from the funds raised are intended to be used as working capital and to fund several expansions plans. Those include, but are not limited to, increasing the company's manufacturing capacity and improvement of the existing plant and processes.
According to the prospectus, if the offer is successful the company will list on the Junior Market of the JSE, and the directors intend to pay an annual dividend of not less than 25 per cent of net profits available for distribution, subject to the need for reinvestment in the company from time to time.
The public will own 11 per cent of the total issued shares, board applicants one per cent, staff applicants 0.5 per cent, key partners 7.5 per cent, and Mayberry five per cent.
The company manufactures and supplies colourings and flavourings for the food and pharmaceutical industries, as well as fragrances used in household and body-care products.