Express Catering heading for Junior Market

2017 is set to be the year with the most listing on the Jamaica Stock Exchange even as just four listings have made it to the market so far in 2017. At the end of 2016, eighteen new listings were expected based on feedback the stock exchange obtained from brokers and companies expressing an interest in listing.
Express Catering a company operating in the Montego Airport is being brokered by Mayberry Investments in a bid to raise funds for existing shareholders. The company shares are expected to be listed on the Junior Market of the Jamaica Stock Exchange. Existing shareholders plan to sell between 20 to 40 percent of the company to raise around $400 to $500 million at a price range between $1 and $2.50 per share, our source informs IC Insider.com.
The company would be valued around $1 billion and using a PE of 10 times earnings would put the profit at around $100 million. The bulk of passengers passing through the Montego Bay airport are tourist, with the continued increase in hotel rooms passenger traffic will keep growing for some time and provide the company with increased opportunity for growth.
Not much more has so far been disclosed, but an indication of the company’s size can be gleaned from the fact that Montego Bay Airport Ltd generated revenue from Express Catering for rental and commission on food and beverages sales of U$$2.7 million in for 2016, an increase from US$2.5 million in 2015.
In April this year The Gleaner reported that the company has annual revenues at US$14 million from being an exclusive provider of food and beverage products in the post-security lounge of the Sangster International Airport. The company has a diverse group of proprietary brands and international franchises to include such brands as Quiznos Subs and Salads, Aunt Annie’s Pretzels, Nathans Famous Hot Dogs, Cinnabon, Moe’s South Western Grill, Wendy’s, Dominos and Dairy Queen.
Elsewhere, the Musson’s subsidiary, Productive Business Solutions prospectus is said to be at the FSC for vetting, from about three weeks ago and should be close to being released to the public. Productive Business Solutions operates in the Caribbean, Central America and the USA and will come to the market with a US$41 million offer of ordinary shares. Stationery and Supplies Limited is also expected to be coming to the market anytime now.

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