RA Williams has its sights on listing on the Jamaica Stock Exchange’s (JSE) junior market through an initial public offer (IPO) of 400 million shares priced at $1.00.

In its prospectus, the pharmaceutical distribution company said it will need to raise at least $2.65 million from the IPO and meet the JSE’s criteria to qualify for admission. The document further outlined that public subscriptions have been set at $210 million while reserved pools for “Key Strategic Partners” and company applicants are capped at $160 million and $30 million respectively.

Applications for the shares will open on July 17, and the close is scheduled for July 31. However, the company advised that the application window could be extended or closed early.

Founded in 2012, RA Williams distributes over 130 products in Jamaica for eight international pharmaceutical manufacturers.

In 2022, the company hit approximately one billion in revenues, exceeding sales in the previous year by 53 per cent. Revenues again increased to $1.4 billion in 2023.

In February 2024, RA Williams moved its operations to a new modern warehouse facility in Spanish Town, St Catherine, which is purpose-built to house the pharmaceutical distribution business. The facility provides approximately 21,000 square feet of warehouse space with modern offices and amenities to help us

“Our journey and the story behind it is not unique, but it is the epitome of what it means to truly be Jamaican. Ambitious, resilient, bold and indomitable are a few of the words that come to mind when describing our company’s story. Though we have come a long way, we are even more inspired by what lies ahead. As we honour our commitment to improving healthcare, the backbone of our business, we look forward to enhancing our innovation and inventory as we expand access to quality pharmaceutical products,” CEO Audley Reid shared.

RA Williams completed negotiations with Fourrts (India) Laboratories Pvt Ltd and Mankind Pharma Limited, with plans to introduce new treatment options in areas requiring treatment with anti-infectives and dermatological solutions. This expansion of its product offering should bolster the company’s revenues in the future.

The distributor names Aristopharma, Indus Life Sciences, IPCA Labs, Square Pharmaceuticals, and MSN Labs as some of its suppliers.

The purpose of the capital raise, the company says, is to pay off loans and short-term debts, as well as use the remainder of the funds for working capital needs.

“The company is in a new cycle of its growth which will be underpinned by the utilisation of a higher proportion of equity to fund its future expansion. As a result, the proceeds from this invitation will be mainly used to repay the company’s debts. This debt reduction will have the immediate effect of reducing the Company’s financing costs, thereby increasing the Company’s profitability and the expected returns to shareholders,” Reid explained.

Sagicor Investments Jamaica Limited is the arranger and lead broker for the IPO.