PIONEER Manufacturing Distribution Company Limited has set its sight on going public this year and has tapped NCB Capital Markets Limited (NCBCM) to arrange financing with the funds already earmarked for the company’s regional expansion plan over the next five years. The company however declined to say how much it will seek to raise in the proposed initial public offering (IPO) or when the prospectus will be made available. The Jamaica Observer was told it would be “soon soon.”

The company, which has been operating for nearly 17 years, distributes its flagship Chloro-Do brand bleach and Diversey Corporation products, primarily cleaning, hygiene products and lubricating products, to companies like Jamaica Broilers Group, Wisynco, GraceKennedy and Red Stripe.

“With an anticipated 15-20 per cent growth expected over the next five years, it required us to take a look at the business with a view to building our capacity to fuel the expansion activities. It is with this in mind that we are excited about our engagement of NCBCM as we embark on this new phase of growth for the company,” said founder and Managing Director Alfred Thomas in the press release.

Apart from getting the recent opportunity to distribute Diversey products to Playa Hotels & Resorts, Pioneer has also been growing its export profile. It began exporting to Dominica in 2018 and made its breakthrough in April 2020 when it signed a three-year distribution agreement in the Cayman Islands for its Chloro-Do bleach. Since then, it has begun negotiations to distribute its products to St Lucia, St Vincent, St Kitts, Guyana, Barbados, and The Bahamas. This is on top of growing its future distribution profile to include snacks, personal care, pharmaceuticals, other household cleaning items and pet products.

“We see great market share potential in the Jamaican and export markets and believe that our commitment to quality, innovation, sound management practices coupled with NCB Capital Markets Limited’s expertise will position us to meet the growing demand for value from our customers. The pipeline looks exciting for us as we explore opportunities in the manufacturing and hotel industries, new product development, some acquisitions and increased demand for our products in Jamaica and other Caribbean territories,” Thomas added on their expansion opportunities.

Pioneer Manufacturing already distributes dog food under the Pro-Pet label and has extended its product range to include Chloro-Soft fabric softener and Chloro-Blu laundry soap which are distributed through 400 retail locations islandwide. Pioneer supplies Royalton, Iberostar, H10, Bahia Principe to clean and disinfect laundry along with areas such as the kitchen and pool. The company’s Chloro-Do bleach is contract manufactured by other local manufacturing firms.

While it has not confirmed if it will be going the initial public offering (IPO) route versus other capital raising avenues, Thomas said, “We are confident that our engagement of NCB Capital Markets will provide us with the support needed to achieve our expansion goals. PMD is committed to delivering superior products and services to our customers in the Caribbean, and we look forward to this exciting new chapter of growth over the next five years.”

The last IPO NCBCM arranged in April 2021 for Future Energy Source Company Limited (Fesco) when the company raised $240 million in a $400-million Junior Market offer. NCBCM also arranged $1.7 billion in bond financing in 2022 for Fesco’s liquid petroleum gas (LPG) market entry. The bonds were to be listed on the Jamaica Stock Exchange’s (JSE) Private Market.

NCBCM also recently signed distributor Cari-Med Group Limited last November to consider financing options which included listing on the JSE.

There has been no new public market offer in 2023 following the events surrounding Stocks and Securities Limited (SSL) which has since been terminated as a broker-dealer of the JSE. This has resulted in clients’ securities being tied up between the JSE’s subsidiary, Jamaica Central Securities Depository (JCSD) and the Financial Services Commission (FSC) which is the temporary manager of SSL and has to approve every action for the firm. The JSE published a vaguely worded release on the day it terminated SSL. It also published a notice of tips when engaging a member dealer/broker and a post titled, ‘JCSD — Safe And Secure Investing’ in the last two months.

A client’s request to move shares and cash from SSL to another broker was hit by the same approval limitation with a financial advisor noting in an e-mail that it was logged for approval with the FSC. The JSE has not made direct contact with SSL victims on their concerns regarding their JCSD accounts as noted from the February 24 post. It has also not made any further announcements surrounding the SSL matter except for it being mentioned in the monthly regulatory reports.

The FSC has been shaken up in recent months over the SSL saga which saw former executive director Everton McFarlene resign and the Bank of Jamaica (BOJ) taking over the FSC board.

Public offerings involve the review by the JSE and FSC with the latter issuing a letter of non-objection before it can be published on the JSE’s website. The last company’s ordinary shares to list on the JSE was Image Plus Consultants Limited on January 20 with Mayberry Investments’ bond listing on March 13.

The JSE Index was down 5.65 per cent to 335,788.53 points as of Thursday while the Junior Market Index was down 7.47 per cent to 3,668.75 points. The decline in market values comes against the backdrop of rising interest rates with the United States Federal Reserve and BOJ to decide on their policy rates on May 3 and 19, respectively.

“NCBCM, with its extensive experience in financial advisory services, is committed to supporting PMD in achieving its strategic objectives. We are thrilled to be supporting PMD in their expansion plans. We will work closely with PMD to provide tailored financial solutions and strategic advice to support their growth objectives in the region and are confident that this strategic move will create new opportunities and deliver value to consumers and stakeholders alike,” said NCBCM Chief Executive Officer Steven Gooden on the prospects for its new client.