Investors get fresh offer as Everything Fresh heads to IPO
Premier importer and distributor of fruits, vegetables, dairy and other food products, Everything Fresh Limited, is listing on the Jamaica Stock Exchange.
The offer, which opened last Friday, will close on Wednesday, with Stocks and Securities Limited (SSL) is the lead broker for the IPO.
Everything Fresh & SSL together hosted prospective investors at the Audi Terminal last Wednesday, where Everything Fresh showed off their premium quality dairy, seafood, meat and produce products.
Guests were treated to an exhilarating evening of figures and delectable treats curated by ace chefs Oji Jaja of Ashebre & Christina Simonitsch of Simo's Bread and Catering's.
The evening's formalities included a breakdown of Everything Fresh Limited's growth prospects from SSL’s Investment Banking Associate Matthew Williams, after which, Chairman of Everything Fresh Gregory Pullen illustrated his company's journey from a small family owned entity to now, being a multi- billion dollar enterprise poised for expansion.
Lamar Harris, Chief Executive Officer at SSL emphasized the contributions the company intends to make to brand Jamaica and the Jamaican market.
Everything Fresh Limited seeks to raise $390 million from the share offer.
They will seek to hit the $4 billion mark in sales by December 2020 - roughly doubling sales from $1.8 billion in December 2018. The influx of cash from the IPO will enable the Company to take on more large clients which will increase sales. Additionally, economies of scale as they grow will allow them to improve on their margins.
The company has a goal of attaining net margins of seven per cent to 10 per cent.
Courtney Pullen, Managing Director of Everything Fresh, expressed his confidence in the share offer. “We have a goal of increasing our business capacity by retaining and even improving our service to our customers, which is our hallmark.”
The firm, which currently supplies Riu Hotels and Resorts, Iberostar Hotels and Resorts, Hi-Lo Food Stores, Progressive Grocers, and Secret Resorts & Spas, will continue expansion in the grocery and tourism industries. Expansion will be achieved through increased working capital to support operations, introducing several new product lines, establishing a local meat processing facility, and, moving towards regional expansion in the Caribbean.
The company’s eye for the tourism market comes at a time when there is increased investment in tourism development from the public and private sector, making Everything Fresh primed for success as they increase capacity to deliver more products. Additionally, the Company plans to install a solar system that will assist in reducing its carbon footprint and reduce energy costs for more cost efficient operations.
Speaking for SSL, Mark Croskery, Executive Director, SSL (Barbados) Ltd. said his confidence in the Everything Fresh IPO was based on “the tremendous track record of excellent service and professionalism on which the company has built its reputation.”
Everything Fresh will make a total of 156 million shares available, including 26.3 million shares being offered at the subscription price of J$2.50 per unit. Just about 129.7million is being initially reserved for priority application from, and subscription by, employees of the company (excluding executive directors), companies and persons that have done business with Everything Fresh on a continuous basis and whom the company considers critical to its business. Portions will also be reserved for the lead broker, as well as for employees and key clients of the lead broker.
Everything Fresh road show
Everything Fresh traces its origins back to 1996, with Pullen operating as a sole trader, selling local farm produce to supermarkets. After three years of operating at this level, the principals decided to purchase imported fruits and vegetables from the United States through a local Jamaican importer.
The company became C.L. Pullen Limited in March 2003, and continued success led to CL Pullen becoming a direct importer of goods from the U. S. and, in doing this, the profit range increased. Further evolution led to the establishment of Everything Fresh Limited in August 2003.
Several years later, the company embarked on distributing dairy and dry food products, as well as deli meats to supermarkets, further opening new business opportunities. Direct purchasing led to lower prices and enabled the company to enter the hotel supply market, gaining Riu, Fiesta, Secrets, Iberostar, Bahia, Royalton, Couples and Jewels as customers, among others.
With the advent of the hotel market, and the closure of meat supplier National Meats, the company took the opportunity to expand further, purchasing two Freight Liner trucks and building three freezer rooms to accommodate the increased orders. Sales of imported meat and seafood also extended to the other hotels.