Tropical Battery Company Limited’s managing director Alexander Melvin, said the business will double its growth in five years.
Melvin was speaking at the company’s listing ceremony on October 15, 2020.
Since listing, company’s share price has appreciated 18 per cent year to date, closing at J$1.18 per unit on Wednesday October 21, 2020.
Speaking at ceremony, Melvin said, “We have seen the benefits …The plan for the future is to grow in the Caribbean by acquisitions of other battery storage type businesses and hopefully in the next 3-5 years more than double the size of the business, with renewable and electric EV storage,” he said.
With its listing on the Junior Market of the Jamaica Stock Exchange, the company aims to take advantage of the special concessionary tax regime that is currently in place for such listed companies.
One hundred per cent of profits will be exempted from taxation for the initial five year period. For the remaining five-year period, 50 per cent of profits are exempted from taxation
On September 22, the company invited for subscription 325 million shares priced at one dollar each.
The transaction was oversubscribed. Of the amount raised, some will go to selling shareholders and the remainder to funding company expansion.
Tropical Battery indicated in its prospectus that it intends to use part proceeds to upgrade its headquarters at Ferry and other measures to improve its business.
The company has primarily operated in the energy storage space for more than 70 years through the sale and distribution of batteries.
The company made revenues of $1.74 billion in 2019 compared to $1.47 billion the year before. Profit in 2019 was $62.9 million compared to $30.98 million in 2018.