Big Wisynco payday down the road

Wata produced by Wisynco

Wisynco Group‘s primary activities are bottling and distribution of purified water and beverages and the manufacturing of a range of plastic and foam packing and disposable products mainly used in the retail, food service and tourism industry. At present the Company distributes 110 brands with over 4,000 different products.
The Company is offering 149,414,576 shares to raise approximately $1 billion to use in its operations but existing shareholders are offering 635,085,424 shares for sale at the same time as a part of the overall offering. Up to 314,700,000 Shares in the Invitation are initially reserved for priority application from, and subscription and/or purchase by the following persons: a) up to 150,000,000 Shares are initially available for subscription by the Strategic Investors and up to 52,200,000 Shares are reserved for the Broker at the Subscription Price of J$7.87 per Share and up to 112,500,000 Shares are initially available for subscription for all of the employees of the Company including executives, senior managers and directors at a price of J$7.08 per Share. Reserved Shares in any category not fully subscribed by the persons entitled to them, will be made available for subscription by the Strategic Investors Applicants at the Subscription Price and thereafter, will become available for purchase by the general public.

Wisynco operates at two main locations situated in St. Catherine. Manufacturing takes place at White Marl, while Lakes Pen carries out distribution activities. Total square footage with factory, storage & offices between the two locations is approximately 530,000 square feet.

The Invitation will open at 9 am. on Wednesday, 6th December and is scheduled to close at 4 pm on Friday, 15 December, subject to the right to close the Invitation at any time after it opens once Applications for all of the Shares in the Invitation are taken up.
It is the intention of the Company to apply to the JSE to list the Shares on the Main Market of the Jamaica Stock Exchange. The Company offers no guarantee that any of the Shares will be admitted to listing. As per Rule 402 of the JSE Main Market Rules, if the Invitation does not raise 20% of the Issued Share Capital of the Company, by the Closing Date, all monies received will be refunded.
The Directors intend to apply the net Initial Public Offering from the subscription of new Shares in the Company for: • Expansion of its manufacturing capacity to facilitate growth in all current markets for existing and future products; • Investment in more efficient modern internal power generation and utilization • Potential strategic acquisitions – locally, regionally and internationally • New distribution partnerships • Expansion of the Company’s distribution fleet and infrastructure to support the build out of its ‘Route to Market’ system • The establishment of the a western distribution centre and • Increase working capital to expand distribution arrangements through additional or new third-party brands in key categories not currently served by the Company.

True Juice orange juice bottled by Wisynco

Loans from banks increased by 92.5% during 2017, moving from J$1.05 billion at the end of June 2016 to J$2.02 billion at the end of June 2017 and mature between 2018 and 2023 and were obtained for the purpose of funding the expansion of the warehouse and the purchase of machinery and equipment.
Financially, the company is strong, with shareholders’ equity of $7.6 billion and cash of $4.75 billion as of September. Profits for the 3 months to September came out at $656 million versus $591 in 2016 and for the June 2017 fiscal year, $2.24 billion versus $2.3 billion in 2016, from revenues of $19.4 billion while in 2017 revenues were $21.25 billion. For the current fiscal year to June 2018, IC is forecasting profit of $2.6 billion, around 70 cents per share, from revenues of $24.8 billion and $3.9 billion or $1.05 per share in 2019, from sales of $29 billion.
Based on the forecasted earnings, the stock is priced at 11 times earnings and should double towards the end of 2018 based on the projected 2019 earnings. The stock is now sixth on IC TOP 10.

About IC