Hon. Lascelles Chin, Founder, Chairman & CEO, of the Lasco Group of companies

Lasco shares oversubscribed

2,000 applications total more than $650m

Initial Public Offer for Lasco Distributors Ltd, Lasco Manufacturing Ltd and Lasco Financial Services Ltd Closes Within Three Minutes of Opening, After Receipt of Applications in Excess of JMD 650mm Surpassed the JMD 415mm Target

Wednesday, September 15, 2010

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MAYBERRY STRIKES AGAIN with LASCO

The hastily called media briefing by Hon. Lascelles Chin, Founder, Chairman & CEO, of the Lasco Group of companies to announce what was billed as a new, exciting chapter in the life of LASCO, had the business media community in a tail spin. Was he selling the company, was there a merger, were they closing down, what was the story?

The presence of the dynamic Mayberry Investments trio, Chris and Mark Berry principal shareholders in the company and CEO Gary Peart in the room, sitting at the head of the table, was a clear indication that this was not an announcement of closer or sale of the company. These guys were in the room for one reason and one reason only. They had secured another one.

The announcement came just under ten minutes into Lascelles Chin address to the packed room of editors and business journalist. “It is our intention for LASCO to be listed on the Jamaica Stock Exchange within two months.  We will be giving our loyal customers and Jamaicans from all walks of life a chance to own shares in LASCO. This will also fast-track LASCO’s expansion of its local and export operations.”

And LASCO’s financial adviser and lead broker for this historic proposed listing is none other than Mayberry Investments Limited.

According to Gary Peart, the decision to list on the exchange within two months and make an immediate announcement was taken practically overnight, hence the hurriedly called media briefing.

Mayberry CEO Gary Peart

According to Peart, Mayberry was invited to consult and recommend to the Lasco directors the best financial structure for the Lasco Group going forward and having reviewed all the options recommended an IPO.  The green light from Lascelles Chin and his board was given so fast, they have not even decided as to which of the exchanges it will be done on, either the main board or the junior exchange, or even the financial details on the LASCO public share offer. All they could say was that they would be looking for at least JA$450 million and would be giving up 20% of the company for this, suggesting that they may be heading for the junior exchange.

In an effort to hold off the flurry of questions from those in attendance, it was announced that further details would be announced at a series of investor briefings, which the company will be hosting over the coming weeks. At that point investors, analysts and the public will have a chance to get their queries on the LASCO share offer answered.

“This is your chance of becoming one of the owners of LASCO and as you can see, we will have a tremendous team working for you.” Said Lascelles Chin, to the cheer and applause of those in the room.

Businessuite was however able to uncover that the LASCO public offer may have the making of another Mayberry five minute IPO window.

Mayberry Chairman Chris Berry

Mayberry Investments Limited (MIL) is developing an enviable record and reputation for very successful IPO’s on the Junior Exchange.  They were the lead broker and financial adviser to the recent Jamaican Teas initial public offering, which was oversubscribed two minutes after subscriptions opened in Kingston to a hungry equities market. The J$3.37 per share offer opened at 9:00am and was closed at 9:02am even though the offer was to have stayed open for one week. The subscriptions amounted to more than J$180 million, just about double the J$98 million of equity capital the company was seeking to raise.

Jamaican Tea CEO John Mahfood

Jamaican Teas joined two other companies, successfully taken to the market by Mayberry, Access Financial Services Limited last year and Blue Power Group earlier this year which is now capitalised at J$1.5 billion according to recent reports. Blue Power had a similar reception when its offer debut. The offer closed in one minute.

Mayberry as part of its deal with Blue Power secured 948,300 shares, valued at the time JA$3.69 million, in lieu of professional fees for its role as lead broker of the IPO. Based on current share prices this is now worth 6.08 per share or JA$5,765,664, the stock has also traded as low as 4.47 since the IPO. Not a bad return on their investment from any angle you take it. This may just be the format to be used in other IPO’s both by them any other brokers looking to take companies to the market.

Dr Dhiru Tanna, chairman, Blue Power Group Limited

In the case of Access Financial Services the offer was cut off one working day ahead of its intended close date, having hit the intended target well ahead of schedule. The company, a provider of micro, small and medium-size business loans and personal loans, opened its IPO to the market on October 14. The offer was to have closed Tuesday, October 20, allowing for the Monday’s Heroes Day holiday, but was pulled October 16

Marcus James, chief executive officer of Access Financial

“We raised the $100 million intended and will now move to list,” said Marcus James, chief executive officer of Access Financial at the time. Access took in $100.195 million for the 5,490,199 shares on offer – effectively divesting 20 per cent of the company.

It should be noted that Mayberry was a major shareholder in the company having acquired an equity interest some months before the IPO.

From all indications LASCO’s IPO will be a truly historic event that underlines its confidence in Jamaica and the customers that have loyally supported them over the years. And so when it was announced that they will be reserving shares for key target groups such as nurses, teachers, police, it was clear that the ingredients for success was sown. For the last ten or more years LASCO has generously supported and recognised the dedication and hard work of this group of Jamaicans and it is expected that they will return the support by buying up Lasco shares and of course encouraging others to do so.

LASCO will also be reserving shares for staff, customers and retired professionals further ensuring the success of the IPO and another record achievement for Mayberry, four down and who knows how many more to go.

Related story – edited

Hart Group contemplates Junior Exchange listing

MARK Hart, CEO of the Hart Group of Companies and Caribbean Producers Jamaica Limited (CPJ),

MARK Hart, CEO of the Hart Group of Companies and Caribbean Producers Jamaica Limited (CPJ), has disclosed that he is contemplating listing another of the companies from the Hart Group on the Junior Stock Exchange (JSE).

Of The Hart Group, which is over 15 years old, CPJ which distributes wines, spirits and beer in Jamaica is perhaps the most renowned. Hart would not confirm that CPJ would be the company listed, but his involvement as founder and developer of CPJ so far indicate that he may be taking the company to the next level.

He said he decided to pursue listing in order to raise capital and take advantage of the incentives that are available from the Junior Exchange. “I want to be in a position to operate this company and be in a position to use the capital market as a way to grow for the future,” Hart said.

CPJ is strategically located in the Montego Freeport, a quarter of a mile from the wharf and five miles from the Montego Bay airport. It operates from a 86,000-square foot warehouse that incorporates specific areas for refrigerated, frozen, dry goods and bonded goods, and has the flexibility to hold wines duty free. The company is a national distributor with a fleet of 35 large refrigerated and smaller dry trucks.

A stipulated 20 per cent of the company’s shares will be offered for sale to the public, the value of which is yet to be decided. The primary brokers will be Mayberry Investments Limited, the company which has listed all three of the companies so far on the Junior Exchange.

“Mayberry has shown that they have a very strong understanding of the listing requirements,” said Hart of his decision to go with Mayberry. “They are one of the most active brokers in trading and equities and their team is very innovative.”

http://www.jamaicaobserver.com/business/Hart-Group-contemplates-Junior-Exchange-listing_7786933