Caribbean Cream Limited will seek to raise $75 million by listing 20 per cent of the company on the Jamaica Junior Stock exchange by way of an Initial public offer (IPO) which will be offered by lead brokers Stocks and Securities Limited at $1 per share.
The subscription opens at 9:00 a.m. today, April 25 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 Kremi 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.
"What became very clear over the process of two investor briefings was that there is significant room for growth available for CCL, growth that this IPO will help them achieve. All vendors I spoke to had one main complaint of not getting enough supply of "Kremi" ice cream, based on customer demand. This IPO will enable Kremi to have the capacity to have meet market demand, particularly through the acquisition of a new blast freezer that will see faster processing of the product," stated Kevin Jones, Assistant Manager for the Wealth Division at SSL.
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 icecream novelties, CCL also distributes the Flavorite brand of frozen novelties from Trinidad.