Licensed petroleum bulk distributor, Regency Petroleum Company Limited (RPL) is the latest company to be listed on the Junior Market of the Jamaica Stock Exchange (JSE).

The company was added to the Junior Market during a brief listing ceremony this morning.

This follows its successful initial public offer (IPO) of shares last month.

The IPO opened on November 24 and closed the following day, having been heavily oversubscribed. With GK Capital Management Limited as the lead broker for the IPO, the company’s prospectus invited applications for a total of 287,157,354 million shares priced at one dollar each.

Just over 11,000 applications were received for over 1.2 billion shares. The proceeds of the J$287 million IPO will be used to settle existing debt and expand the business.

RPL plans to use approximately J$160 million of the proceeds to liquidate its total existing indebtedness. This move should assist the company in optimising its capital structure for further growth and enhance its free cash flow.

Approximately J$75 million of the funds raised are slated to go towards completing its Paradise Pen Service Station in Westmoreland. This new service station will incorporate modern technology and equipment and feature a state-of-the-art convenience store.