Eric Solis Marketing, a Trinidad and Tobago based small enterprise offered 2.75 million ordinary shares to the public of T&T in an initial public offer at TT$4 each. The issue represents 33% of the issued ordinary shares and is offered as an IPO. A successful issue will result in the parent company remaining as the majority shareholder.
The offer opened on the 16^th of July and is scheduled to close at the end of last week, at the discretion of the Company, but no later than one year and twenty days from the effective date of the distribution statement. The shares will be listed and registered on the small & medium enterprise (SME) market (the ‘SME Market’) on the Trinidad & Tobago Stock Exchange. The issue is underwritten by NCB Merchant Bank TT, with the company receiving the proceeds.
The proceeds will be used to procure equipment and consumables for sale or rent to its customers. Acquire new lines of business and help avoid substantial interest charges from key suppliers.
According to the prospectus, SOLIS is a notable supplier of multifunction printers (MFPs) and managed print solutions, years ago. The Office Authority, the Ultimate Parent acquired it to strengthen its servicing portfolio. This strategic acquisition was driven by the understanding that SOLIS’ offerings would complement the suite of services provided by parent company at that time.
The core operations involve sales, rental, and servicing of multifunction printers (MFPs), photocopiers, and other business equipment for companies predominantly located in Trinidad and Tobago. The industry encompasses a structure in which the manufacturers, primarily based in Japan or the USA, appoint authorised dealers on a country or regional basis to manage their respective territories. “As an authorised dealer, SOLIS has established itself as a reputable representative for seven renowned international brands, including Konica Minolta, Lexmark, HP, Risograph, Brother, Papercut, and Fellowes. The company has installed, serviced and maintained thousands of machines across several governments.”
At the date of the Prospectus, the total issued share capital was 5,583,333 ordinary shares. Shareholders’ equity ended at the close of April at $17 million, the company’s Management accounts show. Current assets stood at $21 million with Current Liabilities at $6.7 million.
The company reported a profit of $2.7 million for the year to April 2024 after the provision of tax of $1.27 million from a profit of $1.83 million after tax of $900,000 in 2023 and just $193,568 in 2022. Revenues fell from $28 million in 2023 to $27.55 million in 2024 and declined in 2022 to $20.46 million from $26.36 million in 2021.
Profit in 2024 was helped by a sizable fall in Administrative expenses to $3.85 million from $5 million in 2023 and is well down from $7 million in 2021. The change is due mainly to an adjustment made to management fees charged by the parent company from $3.3 million to $1.5 million in 2024, which the company states will be the amount chargeable in the future.
The company projects revenues of $25 million for fiscal year 2025 and a profit of $7.3 million excluding taxation with a gross profit of $13 million. Net asset value is $3.07 based on the management accounts to April 30, 2024.