Fesco owners sell large block of shares

Connected parties of fuel marketing company Future Energy Sources Company Limited, which trades as Fesco, sold nearly $1.5 billion worth of shares last week, making it the largest trade for the company since its listing on the junior market a year ago.

The price paid by the buyer was not disclosed.

The nearly 239.1 million shares, which were valued at $1.43 billion at the closing price of $5.97 on the day of the transaction, amounted to 9.56 per cent of the company. The stock closed at $6.02 on Friday.

The most current disclosures of top shareholdings in Fesco show that only four investors held stakes above 10 per cent: Tweedside Holdings, Errol McGaw, Trevor Barnes, and Trevor Heaven Holdings Limited.

The closest trade to the one seen last Tuesday was the disposal of 125 million units in August 2021. The seller appeared to be Founder’s Pool Limited, whose holdings had fallen by a similar share count at the time of the trade. The dilution of the Founder’s Pool continued thereafter, falling to 98 million shares as of March 2022.

Since its stock market entry in April 2021, the fuel marketing company has been a rapid expansion drive. At year ending March 2022, its revenues skyrocketed to $12.7 billion from $5.9 billion while its earnings climbed 134 per cent to $254 million.

Its diversification into the supply of cooking gas into the commercial and residential markets, along with the buildout of its gas station network, are expected to be primary drivers for the company’s growth moving forward.

Fesco is expected to enter the liquefied petroleum gas or cooking market by April 2023, after which it will complete the buildout of another four to six gas stations.

karena.bennett@gleanerjm.com