JAM | Aug 27, 2023

FosRich has now allocated 55.72 million rights issue

/ Our Today

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Cecil Foster, managing director of Jamaican electrical supplies company FosRich. (Photo: First Global Bank)

Lighting and energy company, FosRich Limited, has now allocated its successful 55.72 million rights issue, which closed last week.

The rights issue, which was arranged by Mayberry Investments Limited, gave existing shareholders the opportunity to buy one new share for every 90 shares owned at a price of at J$2.50 per unit. The basis of allocation sees existing shareholders, who applied for less than or equal to their provisional allotment amount, receiving their full amount.

At the same time, applicants who applied for more than their provisionally allotted amount will receive the total of their provisional allotment plus a pro-rata allocation of approximately 99.52 per cent of the excess shares for which they applied.

Fosrich has raised J$139-million from the rights issue, which opened on June 2.

The Cecil Foster-led company plans to use the funds to complete phase two of its 30,000-square foot fulfillment centre on Molynes Road in Kingston. This, is in addition to paying the expenses associated with the rights issue, which FosRich estimates will not exceed J$9 million, inclusive of general consumption tax (GCT).

It is the company’s intention to apply to the Jamaica Stock Exchange (JSE) for a supplementary listing of the new ordinary shares from the rights issue for admission to trade on the Junior Market.

FosRich was incorporated on April 6, 1993, with its main lines of business being the manufacture of PVC pipes and fittings and the distribution of lighting, electrical and solar equipment.


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