Two local manufacturing companies, Jamaica Fibreglass Products and Spur Tree Spices, are coming to the equities market next month to raise funds for expansion. The companies are now putting their financial documentation together, as they begin to craft their initial public offering (IPO) prospectus, inviting the Jamaican public to buy shares.

Jamaica Fibreglass Products, which is led by former Jamaica Manufacturers and Exporters Association president, Metry Seaga, produces fibreglass-based furniture and beddings while Spur Tree Spices, based at the Marcus Garvey Drive Free Zone complex is led by Dennis Hawkins, an experienced distribution and food production entrepreneur. The company produces a quality of wet seasonings and sauces for the local and overseas market.

Managing director of the Jamaica Stock Exchange (JSE), Marlene Street-Forrest, told the Jamaica Observer that market indicators suggest that these companies will shortly be launching their prospectus. She advised that it’s early days yet, but indicated that the JSE has heard that the two companies will be coming to the market next month, but hasn’t received anything official. The JSE generally receives and signs off on a company’s prospectus before it is released to the public, inviting investors to purchase shares in any IPO.

Street-Forrest is optimistic that the prospectus for each of these two companies will be submitted in the coming days. The Financial Services Commission, which regulates the non-deposit taking financial sector in Jamaica also signs off on a company’s prospectus before it is released to the public for investing.

If the IPO’s are successful the intention is to list on the Junior Market of the local stock exchange. It has been reported that GK Capital is the broker of the two IPOs.

It is understood Jamaica Fibreglass Products is expected to raise under $300 million, while Spur Tree Spices is seeking to divest 20 percent of its shares with expectations of raising a similar amount from its IPO. Spur Tree Spices IPO will follow that of Jamaica Fibreglass Products.

The Business Observer quizzed Street-Forrest about any upcoming IPOs for the rest of this year, to which she responded that the only ones she would have got some information about are that of Jamaica Fibreglass Products and Spur Tree Spices. However, she was quick to make the point that it’s early days and lots of time for interested companies to come to the market. There is talk of several potential listing candidates in the manufacturing sector. In addition, NCB Capital Market is said to be working with a few companies regarding bringing them to market to raise capital for expansion whilst diversifying their equity ownership. These entities should have come to market already had it not been for the novel coronavirus pandemic.