JFP (Jamaica Fiberglass Products) CEO Metry Seaga has expressed relief that his company’s initial public offering (IPO) was a success and is now setting his sights on fulfilling the promises made in the prospectus.
JFP came to market seeking to raise $280 million. The offer, which opened on Monday, was oversubscribed and was closed on Tuesday.
“I am thrilled at this endorsement from the market, and I want to thank all our investors,” Seaga said in reacting to the success of the IPO. “JFP has continuously delivered a great performance, even throughout the pandemic, by being innovative and focused. There is much more on the horizon for us to achieve and this is the best time to invest in our growth. You will be glad that you did,” he continued.
Referring to the company’s future plans Seaga explained that, “the IPO will fuel our drive to expand our current factory and upgrade machinery to remain on the cutting edge. This will help us to increase efficiency and continue diversifying our product offerings to suit the myriad opportunities cropping up in the hotel industry and the casual dining and quick-service industry”.
Recognised as one of the Caribbean’s largest contract furniture manufacturers, JFP says its successful IPO demonstrates the belief in its steady rise over the past 36 years of operation. With its factory being located in Kingston, Jamaica, JFP is centred in the heart of the logistics hub of the Americas, and with the Caribbean Basin Initiative it may export into the USA free of duty.
The company recently confirmed that it will be exploring the establishment of agent agreements throughout the USA, Caricom, and South/Central American markets in the short term. As outlined in its prospectus, the company will apply to list on the Junior Market of the Jamaica Stock Exchange (JSE).
If successful in its application, the furniture manufacturer would have the distinction of being the first furniture manufacturer to be listed on the Junior Market and it will also benefit from the applicable tax incentives.
GK Capital Management was the lead broker and financial advisor to the IPO and also took a sizeable chunk of shares in the issue via the reserve block of shares which were offered to it.
Douglas Robinson of GK Capital Management praised the company’s successful foray into raising capital from the equities market. According to him, “Given the prevailing strong market interest, we had anticipated the IPO would be oversubscribed and we are delighted at the result. JFP Limited has consistently increased in revenue on the back of delivering high-quality and superior value to customers.”
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