Durrant Pate/Contributor

Tropical Battery is planning to return to the equities market later this year to raise money through an additional public offer (APO) of shares in the company, which went public in September 2022. 

The over 70-year-old battery manufacturing company went public through an initial public offer (IPO) of shares amounting to 325 million priced at $1 per share and is seeking more funds to further grow the business, which has actively been growing through acquisition post-IPO.

The Melville family-led management team says, “The planned APO represents a proactive strategy to optimise the financial structure and support sustainable development. The strategic benefits of these acquisitions and financial strategies are expected to materialise over the coming periods, potentially leading to enhanced economic performance and shareholder value”.

Strategic financial decisions 

In his half-year report to shareholders, CEO Alexander Melville highlighted that the strategic financial decisions that have been taken over the past six-months by the business have dramatically transformed its landscape. In particular, the investment in acquisitions and capital expenditures, supported by substantial financing activities, has set the stage for expanded operations and potential revenue growth. 

“To achieve greater cohesion across the markets we serve — Jamaica, the Dominican Republic, and the United States — we plan to capitalise on the synergies among Tropical Battery, Kaya Energy, and Rose Batteries. This strategy is designed to expand growth opportunities and realize cost efficiencies throughout the group,” Melville explains.

By synchronising operations, strengthening market presence and leveraging brand advantages, Tropical Battery aims to develop a unified group strategy that enhances efficiency and increases profitability.

This approach includes thoroughly reviewing and integrating systems and processes to ensure smooth coordination among the three affiliated companies.

Melville contends that “this alignment is expected to enhance our return on capital employed, drawing on the combined strengths of these distinguished brands to foster growth, drive innovation, and deliver exceptional customer service.”