Going public – the FosRich experience

BY KELLARAY MILES
Business reporter
milesk@jamaicaobserver.com

Friday, July 19, 2019

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FosRich Company Ltd has declared that the company hopes to triple revenues within the next year.

Cecil Foster, managing director of FosRich, made these declarations in a follow-up interview with the Jamaica Observer after his presentation at the Mona School of Business' fourth Business and Management Conference.

The FosRich Company officially went public on December 19, 2017 and from then it has been no turning back. The company has since then raised more than $200 million by offering 20 per cent of their business to the public, subsequently tapping into the bond market, which has since given them enough capital to make the aggressive moves needed to strengthen the company.

During the conference held at the Jamaica Pegasus recently, Foster stated that “he has no desire of going back on the decision to go public”. In fact he deems it as a good decision which has been serving the company well.

“We are now seeking to double down on the opportunity to make things happen in the country.

“The company is on a trajectory which we are pleased and is looking forward to further growth within the next year”, Foster said.

He shared that prior to going public “my wife and I were very private people before last year, it was very difficult at first to open up the company to scrutiny but you have to decide that it's something you want to do and be willing to go in that direction”.

Outside of boosting transparency levels for the company upon going public, he noted that the Jamaica Stock Exchange (JSE) has also helped the company to become more governed in terms of its systems and structures.

He then made known some of the incentives derived, which included a tax relief for five years and 50 per cent relief for the next five years. On top of that, the move has also helped his company to fund projects by looking at what the customers want and have them available so they can get faster service.

He further informed that going public also helped with “improving the quality of the workforce present by enabling training and augmentation and bringing personnel with the skill sets required for taking the company to the next level and beyond”.

The managing director of this light and energy company also disclosed that by the next year or so, FosRich will be looking to expand and develop into new areas such as manufacturing.

“We have the PVC conduits which we have started in the last three months,” he declared.

Foster advised as a precursor to joining the market that companies should think about timing and if the time set to launch out will bring timely results. He then urged other businesses and entrepreneurs to “set apart themselves in terms of what they want to bring to the market and the value that will be given when these products are used in the market”.

Marlene Street Forrest, managing director at JSE, in her presentation at the conference also alluded to the benefits of going public, asserted that this move will certainly help companies to increase their value after years of ownership.

FosRich will be holding its annual general meeting next month. Its shares increased from $4.36 on Monday to $5.00 on Wednesday.


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