Wednesday, April 17, 2013

Caribbean Cream IPO Opens on April 25

 
KINGSTON, Jamaica. April 17, 2013; Caribbean Cream Limited (CCL), the manufacturers of the Kremi brand ice cream and ice-cream novelties,opens its initial public offer (IPO) on April 25, 2013.
 
On offer will be 20  percent of the company.  The expected raise of approximately $75 million in capital will be used to expand and modernise its South Road manufacturing plant to increase production capacity.
 
Lead brokers Stocks and Securities Limited (SSL) will offer the shares at the invitation price of $1 per share. The subscription opens at 9:00 a.m. and closes on May 10, 2013 at 4:30 p.m. subject to the right of CCL to shorten or extend the offer.
 
Currently, the demand for its products exceeds the company's capacity to supply due to insufficient storage space and production capacity. As such, CCL plans to purchase a larger cold room, a higher capacity blast freezer, acquire new factory space and expand its warehouse facility.
 
The company shares the bulk ice cream market approximately 50/50 with Smith and Stewart, the manufacturers of Crazy Jim ice cream. In addition to its Kremi brand of 20 flavours of ice cream and ice-cream novelties, CCL also distributes the Flavorite brand of frozen novelties from Trinidad.
 
"Our reason to list on the JSE was simple - to supply the needs of our growing markets." said Christopher Clarke, CEO of CCL, "We operate a viable business that has consistently reported significant growth over the years, and we produce a high quality and delicious product enjoyed by all."
 
A sweet investment! - Christopher Clarke, CEO of CCL enjoys Kremi ice-cream with Mark Croskery, President and CEO of SSL (centre) and his brother and Managing Director of SSL Matthew Clarke at a SSL Investor Briefing held recently at the Terra Nova Hotel in Kingston. 
 
"SSL is excited about this company because it is a young profitable company with great growth potential; the principals have a long and successful family history in the business which has proven to be a tremendous asset."said Lamar Harris, SSL's Manager of Investment Banking.
 
In the six short years after it began operations in Kingston with five persons, CCL has become one of the leading suppliers of bulk ice cream with over 90 persons currently on staff. The company has penciled sales growth of over 40 per cent for the last five years.
 
Last October, CCL signed a $13 million deal with Sandals Resorts International as the sole supplier of bulk ice cream to its Jamaican properties.  A similar exclusive arrangement was brokered with the Jewel Resorts chain. CCL also operates a depot in Montego Bay, which supplies the north-western and south-western parishes.
 

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