R.A. Williams IPO Explained!

So what do I think about the RA Williams IPO? Hmmm…

R.A. Williams is a family-owned company that distributes pharmaceuticals to pharmacies, hospitals and doctors.  They were founded in Spanish Town in 2012, but have since expanded islandwide.

They’re now seeking to raise four hundred million dollars through its Initial Public Offer (IPO). 

What do they want the money for? 

According to CEO, Audley Reid, they want to aggressively pay down debt and become more profitable, which would benefit shareholders like you, if you choose to invest. The vast majority of the funds will be used to pay off debt.

But the company has also been growing rapidly, hitting J$1.4 billion in revenue in 2023 after just 12 years in business.  That’s almost US$9 million, up 41% from the year before!  Net profit also grew to J$98 million, over US$600,000.  Audley says they want to ramp it up even more.

Now if Audley looks young, it’s because he co-founded the company with his mom and sister when he was still in University at UTech.  All three of them are pharmacists, which they believe gives them an edge in the industry, especially against giants like Carimed, Lasco, and Facey Commodities.

RA Williams also has exclusive distribution agreements with drug manufacturers in India and Bangladesh.  Additionally, they have contracts to supply the National Health Fund (NHF).

But with so much competition, where is the growth potential?

So is RA Williams a good investment for you?

Well, they’ve demonstrated the ability to grow rapidly, secure exclusive deals and contracts, and their leaders are experts in pharmaceuticals, but there is a lot of competition.

If you’re interested in this sector, you may want to consider the performance of other local stocks in the industry, such as Indies Pharma, Lasco Distributors, Medical Disposables and Supplies, and more recently, Image Plus.  Also, we’ve been hearing talks of a Carimed IPO for some time now.

And if you want to learn more about the potential of medical companies, check out our discussion on Taking Stock with analyst Julian Morrison.

The share price for RA Williams is J$1 each.  210 million shares are available to the public, and 190 million are reserved for employees, directors, and key partners.

The offer opened on July 17 and the scheduled close date is July 31.  By the time this video comes out it will probably be closed already, but you could still potentially buy after it lists on the Junior Stock Exchange in about a week.

And that’s the bottom line.