Jul 2010 Financial News

Lasco going public

Jul 15, 2010

Lasco Group of Companies, after 22 years of operating in Jamaica as a privately owned entity, will within the next two months become publicly listed, trading on the Jamaica Stock Exchange (JSE).

According to Lascelles Chin, chairman and chief executive officer of Lasco, the move is geared towards fast-tracking the company's expansion plans.

"Because of the affordable prices, Lasco products are always selling at a fast rate, but with the tight economy some clients are having difficulty in paying, and as a result us collecting, but we are still doing pretty well," Chin told journalists during a press conference held yesterday morning at the Spanish Court Hotel in New Kingston.

"However, with the expansion plans, and even now with the increase in volume we have to watch our cash flow, so by going public we can have more funds available and funds at the lowest possible cost," he added during the press conference where the announcement was made.

"We will be giving our loyal customers and Jamaicans from all walks of life a chance to own shares in Lasco."

Hoping to raise $450m

Specific details on the structure of the share offer were not disclosed but the company is hoping to raise some $450 million in equity capital on the market.

"The structure of the offer is still to be finalised but I believe that it will offer significant value for shareholders," said Gary Peart, chief executive officer of Mayberry Investment Limited, the investment house that has been contracted as financial adviser and lead broker on taking Lasco public.

Anticipating a heavy take-up of the offer, Chin said a proportion of the shares would be reserved for teachers, nurses and police officers. Another portion of the shares will also be set aside for the company's staff members, retired staff personnel and customers.

Lasco business activities span the manufacturing and distribution of food, household, personal and baby-care products, as well as pharmaceuticals. The company also operates in the financial services industry as a provider of Moneygram services. Over the years, Lasco has evolved from a small operation at its Red Hills Road, St Andrew, location to a major operation to include a 25-acre property in White Marl, St Catherine, on which it is now hoping to set up a new manufacturing factory.


Source:
Sabrina Gordon, Staff Reporter
sabrina.gordon@gleanerjm.com
Jamaica Gleaner
Thursday July 15, 2010

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