Durrant Pate/Contributor

RA Williams’ initial public offering (IPO) has been oversubscribed, having raised over J$420 million, an excess of the pharmaceutical distribution company’s target, as of the close of the subscription on Wednesday (July 31).

Sagicor Investments, the lead broker and arranger for the IPO, announced that investors were very receptive to the offer, particularly those in the Non-Reserved Pool, which was open to members of the general public.

Final allotment details will be available on the Jamaica Stock Exchange’s (JSE) website. 

The Non-Reserved Share Pool available to the general public comprised 210,000,000 shares, while the  Reserve Share Pool included 30,000,000 shares and the Key Strategic Partners Reserve Share Pool contained 160,000,000 shares. 

The majority of the proceeds from the IPO will be allocated to repaying the company’s debt, thereby reducing the company’s financial costs and increasing its profitability and expected returns to shareholders. Proceeds will also go towards working capital and increasing the company’s solar energy capacity. 

RA Williams has committed to pursuing an annual dividend payout of 25 per cent of net earnings, subject to the need for reinvestment of capital in the company from time to time. The IPO sought to raise $400,000,000 at a subscription price of J$1.00 per unit, which opened on July 17, 2024. 

As detailed in its prospectus, the company will now apply for listing on the JSE Junior Market. If the application is successful, the pharmaceutical distributor will become the first company on the junior market with over 50 per cent of its board made up of registered and practising pharmacists. 

Commendations on successful IPO

Mischa McLeod-Hines, vice president of capital markets at Sagicor Investments, commended RA Williams for successfully raising the necessary capital from the market to support its growth strategies and its impending listing on the junior market of the JSE. 

According to her, “Sagicor Investments is honoured to be a part of RA Williams’ journey so far. We have witnessed firsthand the hard work and determination that the company, its executives and team members have poured into their growth strategy. We look forward to a bright future for the company, and Sagicor Investments will continue to support their endeavours, as they pave the way for future successes in the local pharmaceutical industry and beyond.”

In welcoming the close of the IPO and the successful raising of the proceeds sought, CEO, Audley Reid remarked, “We are deeply humbled by the tremendous support from our investors”.

“We couldn’t have done this without them, and we are now eager to welcome them as part-owners of our company. This successful IPO represents a crucial milestone in RA Williams’ path to long-term growth and expansion. We are now better positioned to scale up our contributions to the improvement of healthcare in Jamaica and we know that countless lives will be positively impacted by the ripple effect of this achievement,” added Reid.