NASSAU, BAHAMAS — FOCOL, the BISX-listed petroleum products supplier, has launched a $25 million right offering to support its expansion plans.
Colina Financial Advisors Ltd (CFAL) recently announced the commencement of the Secondary Rights Offering exclusively for current shareholders of FOCOL Holdings Ltd. (FOCOL) throughout the upcoming month, until March 22. FOCOL aims to generate $25 million in fresh capital to support the comprehensive expansion plans of the company.
Within this offering, the company is making available 5,010,435 unissued Ordinary Shares, each with a par value of B$0.0008, at an issue price of B$5 per share, exclusively to existing Ordinary Shareholders. Every existing Ordinary Shareholder is entitled to one (1) Right for every twenty (20) Ordinary Shares held as of February 21, 2024, and one (1) Right is required to acquire a single Ordinary Share. It’s important to note that participation in the offering is restricted to existing shareholders, and new investors are not eligible to subscribe.
The decision to opt for a Secondary Rights Offering rather than a public share offering is intended to allow current shareholders to maintain their proportional ownership in the company. This approach ensures that existing shareholders have the opportunity to acquire the shares needed to preserve their ownership stake, which may not be guaranteed in a public offering where shares are available to the broader market.
FOCOL’s net income for the year ended September 30, 2023, was $32.6 million compared to $21.4 million in the prior year, representing an increase of $11.2 million or 52 percent.
Regarding its outlook for 2024, the company noted in its prospectus: “Management is cognizant of climate change initiatives focused on reducing worldwide carbon emissions. Locally, The Government of The Bahamas implemented mandates to increase the usage of renewable sources of energy to 30 percent by the year 2030. The Company continues to expand into the renewable energy sector by integrating it into our current business model.”
It added: “We are encouraged by the record level of visitor arrivals during 2023. We are also encouraged by the announcement of several major resort development projects throughout The Bahamas and The Turks & Caicos Islands, which are expected to further stimulate construction sector growth. Continued growth in the tourism and construction sectors will enhance the Company’s future profitability. As business activity increases, Management remains focused on world-class customer service, integrating technology to improve operations and financial reporting, retaining and promoting local employee talent, and maximizing shareholder returns.”
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