Wisynco aims to raise $6 billion from IPO, offer opens next week
Local manufacturer, Wisynco will offer more than 12 per cent of its company to the general public in its initial public offering (IPO) set to run from Wednesday, December 6 to Friday, December 15.
Altogether, it seeks to raise $6.1 billion, but only $1.16 billion will be used for the company, while the remaining $4.9 billion will be used by selling shareholders for their personal use.
Shares to the public will be sold at $7.87 each.
Wisynco said it would use proceeds from the general public to fund the expansion of its manufacturing capacity for growth in its import and export markets.
It will also build out a western distribution centre and increase working capital to expand distribution arrangements through additional/new third-party brands as well as invest in modern power generation.
A rapidly-growing company, Wisynco has increased sales significantly in recent years moving from $12.6 billion in 2013 to $21.2 billion in 2017.
Over the last five years the company’s year-to-year sales growth has ranged between nine and 21 per cent with a compound annual growth rate of 11.06 per cent over the same period.
The business also boasts strong gross profit margins, averaging approximately 36 per cent since 2012.
Wisynco has made recent investments of approximately US$12 million to build a new warehouse located at its Lakes Pen property and plans to invest another US$8 million to increase its beverage manufacturing capacities.
The rebuilding was partly financed by insurance proceeds received as a result of the fire that occurred in May 2016 as well as debt financing. The company is also in the process of rebuilding its cold storage facility which was damaged in the May 2016 fire.
Wisynco is in the process of implementing an Early Suppression Fast Response fire system that will have a quicker response in the event such a disaster were to ever happen again. The system has 4,500 sprinklers, supported by a 2500 gallons per minute (GPM) fire pump and a 275,000-gallon water tank.
The primary activities of the Wisynco are the bottling and distribution of purified water and beverages and the manufacturing of a wide 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.
It owns, manufactures and distributes a portfolio of popular beverage brands led by WATA and its extension of cranberry flavoured-WATA, BOOM Energy Drink and BIGGA Soft Drink along with the SWEET brand range of plastic and foam disposable lunch boxes, plates and cups.
In addition to its owned brands, we are the exclusive bottler for the Coca-Cola Company. Additional third-party beverage brands manufactured by the Company include SqueezZ and Hawaiian Punch. The beverage portfolio is completed by Red Bull, Tru Juice Freshhh, Welch’s, Mott’s and Snapple, which Wisynco distributes across the island.
The company also distributes a wide array of grocery products from reputable entities including, Kellogg’s, General Mills, Hershey Company, Butterball, Herr’s, and Nestlé, as well as local brands such as Kremi and others.