Regency Petroleum IPO for November 24
Gas distributor Regency Petroleum Limited, RPL, will launch an initial public offering of its shares on November 24 at a price of $1 per share.
RPL is a licensed petroleum bulk distributor which operates in two main segments: liquefied petroleum gas, LPG, and automotive petroleum.
The market float of its share has been in the offing since 2017.
CEO Andrew Williams told the Financial Gleaner that RPL supplies bulk LPG to established bakeries, restaurants and hotels across Jamaica.
RPL's total sales topped $606 million in 2021.
The company's first service station was established at Great Georges Street in Savanna-La-Mar, another is being constructed at Paradise Pen, and a third in Negril under a lease arrangement, Williams said. All are in the parish of Westmoreland.
The LPG storage plant at Crawford, St Elizabeth, has the capacity to fill 1,500 LPG cylinders per day, Williams said.
Under the IPO, Regency will sell 287.16 million shares, just under 172,000 of which have been reserved for different interests.
The Regency board of five directors is chaired by dentist Andre Foote since September. Williams is the only director to hold shares in the business.
The company says that if the invitation is fully subscribed, approximately $160 million of the proceeds will be used to pay down debt, $75 million will be used to complete the construction of the Paradise Pen service station, and $30 million to expand operations via procurement of additional cylinders to satisfy demand.