Regency IPO opens next week

Another Junior Market listing now looms on the horizon with Regency Petroleum Co. Limited based on Westmoreland offering up to 287,157,354 Ordinary Shares for sale at $1 each. The offer opens on Thursday, November 24 and should bring the total junior Market listings to 48 and the number of companies to 47.
Only 115,196,354 shares will be available for subscription by the public, with the rest of 171,961,000 shares reserved as follows – 55.5 million for Employees & Key Strategic Partners, 100 million for GK Investments to convert loan balance and 16.46 million for Associates Loan Conversion.
The company half year results to June show revenues of $332 million up from $248 million in 2021 with profit after tax of $51 million versus $35 million in 2021 and put the earnings per share for this year at 98 cents, with the PE at 10 times this year’s pretax earnings versus the Junior Market average of just over 12, but below the peak of recent new issues of 15 to 20. ICInsider.com expects the offer to close quickly after opening.
Revenues in 2021 amounted to $607 million compared with $194 million in 2020 and just $45 million in 2019, with a profit of $59 million in 2021 after taxation of $18 million up from $14 million with tax or $3 million in 2020.
The company’s operations span Jamaica as a petroleum marketing company licensed to distribute bulk petroleum products. The company was founded by Andrew Williams, Chief Executive Officer. Revenues are currently generated revenue from sales of LPG Cooking Gas, Automotive Petroleum and Transportation of gasoline.
Shareholders’ Equity amounts to $111 million at the end of June this year.

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