Pastrymaker Honey Bun to go public
Published:Friday | December 31, 2010 | 12:00 AM
Honey Bun, a popular maker of cakes and pastries, has planned an initial public offer (IPO) to take the company public and eventually list on the Junior Exchange before the end of March next year.
"It's about expansion," said Michelle Chong, chief executive officer of Honey Bun (1982) Limited.
Details of the IPO - the first pastry stock to debut on the market - were not immediately available, but companies listing on the junior market are only allowed to raise capital of between J$50 and J$500 million.
Chong and her husband Herbert are co-owners of the company, each holding 20,000 of the 40,000 issued shares. The couple, on their last annual return, declared the company debt free.
Already exporting to markets such as the United States, United Kingdom and other Caribbean territories, Honey Bun has earmarked the funds to be raised for expansion of its overseas markets.
Publicly listed companies are required to file quarterly and annual financial statements, an area which has been a hindrance for small companies listing on the junior exchange.
"We have a good company and we were already operating like a public company in terms of our record keeping, so we were encouraged to list," said Chong.
Mayberry Investments Limited, which has been lead broker on seven of eight junior listings since October 2009, is orchestrating Honey Bun's public shift.
Started some 28 years ago by the Chongs, Honey Bun, a limited liability company, makes and wholesales a range of products for the local and export markets.
Its line of products under the Honey Bun brand - which include donuts, snack cakes, buns, raisin bread, cinnamon rolls and cheese bread - are distributed in grocery stores throughout Jamaica.
The now-expansive operation grew out of a small retail bakery first established in the Spanish Court commercial complex in New Kingston in the 1980s.
A decade later, the company moved to a plant on East Street, downtown Kingston, to focus not only on retail but also manufacturing.
Initially, with roadside traffic as its market, Honey Bun products are now available in supermarkets, school canteens and other retail outlets in Jamaica and other parts of the world.
Its portfolio includes more than 20 products.
In addition to new and expanded export markets, Honey Bun intends to introduce products to the market in the coming year.
The company currently provides employment for 180 persons.