Future Energy Source Company Limited (FESCO) has announced a combined initial public offering and offer for sale with an open date of March 31, 2021 at 9:00 a.m. and closes on April 9, 2021.

The company invites applications on behalf of itself and the selling shareholders for the 500,000,000 shares specified in the invitation of 300,000,000 newly issued ordinary shares priced at J$0.80 each and sale of 200,000,000 existing ordinary shares by the selling shareholders priced at J$0.80 each. 

A successful IPO will see FESCO being the first Jamaican-owned fuel distribution and marketing company to be listed and traded on the Jamaica Stock Exchange (JSE). 

500 million shares on junior market

The company will be issuing 500 million shares on the junior market of the JSE with the end goal of using these funds to facilitate entering the LPG fuel market, developing their company-owned, company-operated model and expanding their destination stations islandwide.

FESCO is a Jamaican-owned, fuel distribution company, licensed and operating in Jamaica.

“We have, to date as part of our strategic focus for expansion, partnered with some dealer-owned dealer-operated Service Stations and company invested-dealer operated Service Stations to brand their stations as FESCO service stations,” FESCO said.

In outlining the rationale for this offer, it was noted that FESCO’s shareholders and directors have been in the fuel industry since 1980 with individual and collective experiences as dealers for multinational brands, engineers and business executives. They have the capacity and the drive to provide the motoring public and other dealers with a truly Jamaican product and service experience that could do more than just compete, but could thrive.

“We are proud to be leaders in the evolution and growth of the local gasoline industry, providing fuel services to customers across the island,” stated Jeremy Barnes, CEO, FESCO.

“We are also extremely excited about providing the opportunity for Jamaicans to participate in the fuel industry, a vital player in Jamaican’s economy. We believe that spreading the shareholder base of the company is critical. We want our fellow Jamaicans, including our dealers and motorists, to be able to participate and profit on the use of a commodity that exists in multiple areas of our daily lives.”

Participate and profit as fuel company shareholder

By participating in this IPO and investing in FESCO, individuals for the first time in Jamaica’s history, will be able to participate and profit as a shareholder in the fortunes of a fuel marketing company whose equity will be traded on the JSE.

The proceeds from the subscription of shares from the company will be used to support the growth of the existing businesses of the company, allow the company to pursue strategic investment opportunities and pay the expenses of the invitation.

Proceeds will also be used to enter the consumer cooking gas (LPG) market within 24 months of the listing; increase the presence of FESCO in the Kingston & St Andrew area by the introduction of a new service station on Beechwood Avenue, which is slated to be opened in June 2021, retail LNG for the transportation industry at the FESCO Ferry Service Station (Mandela Highway)  in 2021, eliminate the directors’ loans to the company and facilitate general corporate purposes, including working capital, operating expenses and capital expenditure.

Lead broker NCB Capital Markets Limited is encouraging the public to invest in IPO and reminded those investors who are interested in subscribing for shares to read the Prospectus in its entirety and the full terms and conditions of the invitation which is currently available on the JSE website, GOIPO and www.buyfescoipo.com.

“FESCO has seen significant growth since its first sale in 2013 and with the plans that the board has in place, we expect phenomenal growth over the next several years. We use fuel on a daily basis whether as an end-user or as a commercial user through their production or manufacturing arms. Why not participate in an offer such as this that we spend so much cash on? We encourage all Jamaicans – motorists, dealers, consumers, commercial manufacturers alike – to invest in this incredible opportunity,” noted Sancia Thompson McDonald, manager, Wealth Management and Syndication, NCB Capital Markets Limited.