TROPICAL Battery Company Ltd has completed its graduation to the main board of the Jamaica Stock Exchange (JSE), cementing a transformation funded by debt that it is now actively working to reduce through a recently closed equity raise that fell short of its original target but was deemed sufficient to proceed.

The move, effective Wednesday, follows the company’s decision to close its additional public offering (APO) on July 4, 2025, after twice extending the invitation period to accommodate institutional investors. The company raised approximately $696.6 million by issuing 372.5 million new ordinary shares, which was lower than the original target of $1.79 billion it had aimed to raise.

Management framed the successful raise as one component of a broader financial restructuring. “We had already prepared a broader set of measures to strengthen the balance sheet and keep us firmly on track with our growth plans,” said Alexander Melville, chief executive officer, in a release to the JSE. “We sincerely thank the investors who participated…Your support is helping us position the company for the exciting opportunities that lie ahead.”

The APO, which was detailed in a prospectus dated May 5, 2025, initially closed on June 6. However, claiming trong interest, Tropical Battery, in consultation with its brokers NCB Capital Markets Limited and Sagicor Investments Jamaica Limited, extended the deadline first to June 20 and then to July 4 to allow institutional and other investors more time to complete their processes. The company announced a full allotment for all applicants, meaning both the key strategic investor pool and the general public received all the shares they subscribed for.

The capital raise is critical for the energy storage firm. Its aggressive growth strategy, particularly the US$9.5-million ($1.4-billion) acquisition of Silicon Valley’s Rose Batteries in early 2024, was largely debt-funded, resulting in a highly leveraged balance sheet. Management’s stated goal in the prospectus was to use the APO proceeds primarily to repay the CIBC Caribbean bank loan that financed the Rose acquisition, settle a $300-million bond, cover transaction costs, and bolster working capital.

The company’s financial performance reveals both strategic strengths and transition costs. While revenue growth was driven by strong energy storage sales pushing it up 18.1 per cent year-over-year to $4.41 billion, the renewables segment faced project delays. Geographically, Jamaica contributed 54 per cent of revenue or about $2.49 billion, while US operations — primarily Rose Batteries — accounted for 44 per cent or $2.05 billion, though the latter was impacted by temporary operational disruptions during a facility relocation.

The company’s leveraged expansion drove a 54.8 per cent year-over-year increase in administration and selling expenses to $1.27 billion for the period. This included one-time acquisition costs and the full-year impact of US operations.

Melville attributed the quarterly challenges to one-time strategic costs but anticipates a strong rebound in the July to September quarter (its Q4), with over $500 million in renewable projects slated for completion, which is expected to drive a return to net profitability.

The graduation marks the culmination of a five-year journey on the Junior Market, during which the company tripled revenues and expanded internationally. The Main Market listing provides a new platform for the company as it seeks to capitalise on the region’s energy transition.

“Our graduation reflects the strength of our 75-year history and the opportunities ahead as we expand across the region and into the US market,” Melville said.