Purity bread maker to list - SSL strikes partnership on IPO distribution

Stocks and Securities Limited says Consolidated Bakeries (Jamaica) Limited is to go public with an initial public offering (IPO) to raise an undisclosed sum early in the new year.

The terms of the offer, including price and number of shares to be floated, were not disclosed.

SSL had previously arranged the AMG Packaging and Paper Company float and is also structuring the offer to be made by C2W Music Limited in 2011.

The investment company said, as it tries to compete for business in the vibrant IPO market so far dominated by Mayberry Investments Limited that it is partnering with CIBC FirstCaribbean to have the bank's 13 Jamaican branches distribute IPOs arranged by SSL.

"It is not that we don't have the information, it is just not ready for the public yet," Kimberly Thellwell, manager of research and investment at Stocks and Securities Limited, told Sunday Business.

Consolidated Bakeries, owners of 'Purity' and 'Miss Birdie' brands, is a 50-year-old operation whose goods are sold in Jamaica and North America.

Chang back in charge

Anthony Chang is back in charge of running the business. Chang also headed Lasco group at the time it split into three companies and went public via an IPO. He left in June. The Lasco stocks are among the more successful junior market stories and are even outperforming many of the companies listed in the upper tier of the market.

The Consolidated IPO proceeds will be used primarily to improve the internal processes at the baking company, said a press release from SSL.

"The company will seek to fund expansion activities as it improves its competitiveness within its local and international markets," SSL said.

Consolidated will be the second bakery to list on the junior stock exchange, assuming a successful IPO, behind Honey Bun.

Consolidated produces a range of pastries and breads including coconut buns, sandwich bread, hot dog rolls, hamburger rolls, corn bread, rock bulla, cherry tarts, marble slice, lemon Danish, pineapple twists, toto, tutti fruitis and breadcrumbs.

marcella.scarlett@gleanerjm.com