AFTER indicating in recent months that it will soon be seeking to raise capital to facilitate its business growth activities, Regency Petroleum Limited (RPL) has now selected GK Capital Management (GKCM) as its financial advisor in that pursuit.

According to GKCM, the engagement “will likely result in an initial public offer (IPO) of RPL’s ordinary shares via the Jamaica Stock Exchange (JSE)”.

The Jamaica Observer understands that the funds are to be raised “before the first quarter of 2023”, giving it a timeline of later this year, with the funds being “within Junior Market limits should we IPO” according to Ryan Strachan, vice-president of investor relations at GK Capital Management. The limit for companies raising funds with an intention to list on the Junior Market is $500 million, but it is not clear if Regency will seek to raise the maximum amount.

Regency Petroleum, a petroleum marketing company licensed to distribute bulk petroleum products, was incorporated in Jamaica in May 2018 and is owned and operated by Andrew Williams and Jeneive Sabdul-Williams.

The company put down roots in western Jamaica and has grown steadily since its inception to become a preferred supplier to numerous households, hotels, restaurants, bakeries, and other local industries, GKCM outlined in a release on Monday.

Regency started out distributing solely LPG cylinders and has since added a retail division of petroleum products specific to gasoline and diesel fuel.

“Our current focus is developing the automotive petroleum segment of our business, and an injection of capital will fuel our strategic plans,” opined Andrew Williams, CEO of Regency Petroleum, in a company release.

Strachan, commented, “We are excited about this new professional relationship that we have established with Regency. We have always taken a keen interest in supporting businesses with high growth potential and helping them realise their capital growth objective.”

GK Capital Management Ltd is the investment and advisory arm of GraceKennedy Limited, established in 2014. The firm is a licensed securities dealer, offering products and services regulated by the Jamaica Stock Exchange and the Financial Services Commission.

Strachan stated, “Given RPL’s performance over the past four years, it is encouraging that they are likely to be the second company in the energy sector to pursue listing on the Jamaica Stock Exchange. These are indications of a broadening of the market and the resilience of the entrepreneurial spirit in Jamaica.”

Patsy Latchman-Atterbury, managing director of GKCM, commented, “It is admirable that in a time when businesses are still navigating the challenges of the [novel coronavirus] pandemic, RPL is laser-focused on building capacity and expanding their business. We are confident that GK Capital’s advisory services will further strengthen Regency Petroleum’s market position.”