AMG's plans excite JSE boss
Published:Friday | February 4, 2011 | 12:00 AM
Expects several listings in 2011
Dionne Rose, Business Reporter
The managers of AMG, the packaging and paper company, remain coy about how much they hope to raise from the proposed initial public offering (IPO) they flagged up this week, but the firm's intention was warmly welcomed by the Jamaica Stock Exchange (JSE).
"I'm excited about the possibility of them coming to list on the exchange," the JSE's General Manager, Marlene Street-Forrest, told the Financial Gleaner. " It speaks to the types of companies we want to be listed on the Junior Stock Exchange."
Incorporated in 2005 and employing 50 people, AMG produces paper products and corrugated carton boxes for clients such as Jamaica Teas Limited, the commodities manufacturer Seprod Limited and the Wisynco Group.
However, the company's general manager, Mark Chin, declined to disclose other basic information on the company, such as capacity and current output and sales. This kind of information will be mandatory in any prospectus in support of the IPO announced Tuesday night at an investor briefing hosted by the brokerage house, Stocks and Securities Ltd (SSL).
Neither AMG's Chin nor SSL's CEO, Mark Croskery, disclosed Tuesday night how much money the company would seek in its offer. They were holding that position up to yesterday, saying that an announcement would be made at a later date.
However, Croskery, to whom all queries about the deal were referred, said that the bulk of the cash raised would be used to upgrade AMG's facilities, expand its operations and extend it line of products.
AMG's IPO will be the latest of a spate of firms that have either come to market or announced their intention since the first listing of the junior exchange last October, under generous tax arrangements.
Junior market listings are allowed for firms with capital of between $50 million and $500 million. They can raise similar amounts in new equity.
Once listed, they are exempt from corporate income tax for five years, and for another five years pay only half the applicable rate.
Already eight firms have listed on the junior market, raising $1.7 billion.
In recent weeks, ahead of AMG's disclosure, two other firms, Honey Bun, a pastry manufacturer, and Intelligent Multimedia, announced their plans for listings.
With these signals so early in the year, Street-Forrest said she was hoping that 2011 will be active with new listings.