Trinidad-based distributor West Indian Traders (WIT) is looking to raise approximately TT$10.1 million through an initial public offering, as the company seeks to accelerate expansion plans and position itself among the country’s largest consumer goods distributors.

The company, which distributes brands such as Hyper Malt, Festival Cookies, Daisy Coconut Oil and Nestlé products in Tobago, is offering just over five million shares at TT$2 each and plans to list on the SME Market of the Trinidad and Tobago Stock Exchange.

According to Managing Director Jake Gillette, the IPO marks the next phase of growth for a business that began 30 years ago as a single-van operation.

“We started 30 years ago from a single van operation, from a husband and wife story,” Gillette said during an interview on Taking Stock. “We’re very excited from where we came from 30 years ago, growing from a single van operation, growing through the years, learning the whole distribution business and becoming quite an established player here in Trinidad.”

Gillette said the company services approximately 2,500 customers weekly and has built its reputation on customer service and efficient distribution.

“We service 2,500 customers on a weekly basis,” he said. “We have over 99% accuracy in reaching our customers with the correct amount of goods and items.”

Rapid Growth Since Acquisition

West Indian Traders was acquired by the Gillette family in 2021. Since then, the company has nearly doubled its revenue.

Gillette revealed that annual sales increased from TT$44 million in 2021 to approximately TT$85 million by 2025.

“We’re growing quite fast,” he said. “We thought it was the right time because we want our stakeholders, especially our staff and our management, to be part of that growth story.”

A major contributor to that growth has been the company’s distribution relationship with Nestlé.

In 2023, WIT secured distribution rights for Nestlé’s downtrade products in Tobago and later expanded that relationship.

“A huge part of our growth has been a combination of our traditional portfolio … and then adding in the Nestlé portfolio,” Gillette said.

New Warehouse at Centre of Expansion Plans

Part of the IPO proceeds will be used to repay approximately TT$4.6 million in debt, freeing up cash flow as the company moves ahead with plans to construct a new 40,000-square-foot warehouse.

Gillette said the facility will allow WIT to improve operational efficiency and expand into new product categories, including chilled and frozen foods.

“We recently purchased two acres of land in the El Socorro area and we have started plans to construct our 40,000-foot warehouse,” he said.

“It frees up our cash flow coming up here into this period where we go into building our new warehouse, and the new warehouse would allow us to optimize and become more efficient as a distributor and expand our portfolio.”

The company believes the new facility could significantly expand its product offering and support future growth.

Why Investors Are Paying Above Book Value

One of the key questions raised during the interview concerned the IPO pricing.

The shares are being offered at TT$2 each, compared with a book value of approximately TT$0.93 per share.

Marli Creese, Chief Executive Officer of NCB Merchant Bank Trinidad and Tobago, defended the valuation, arguing that investors are paying for growth rather than historical asset values.

“When you are looking at a nominal share price that is being offered at a premium to book value, it is because investors are being expected to anticipate a growth premium,” Creese said.

She noted that the company achieved compound annual revenue growth of more than 13% between 2020 and 2025, while profitability grew by more than 8% annually over the same period.

“The premium to the book value is a function of the growth, the demonstrated growth of the company and the reasonable expectations that we have in terms of growth for the future,” she said.

Dividend Expectations

West Indian Traders has indicated a dividend payout ratio of between 25% and 35% of profits, subject to liquidity and profitability.

Gillette said management expects the company to begin paying dividends before the end of the year.

“We believe quite strongly that we’ll be able to do our first dividend before the end of the year,” he said, citing debt reduction, improved cash flow and tax incentives available through the SME market.

Long-Term Ambitions

Despite competing against larger regional distributors such as Massy and Bryden pi, Gillette believes WIT’s smaller size gives it a strategic advantage.

“Because we are smaller, we can be more agile, we can be more flexible,” he said.

Looking ahead, he sees the IPO as the beginning rather than the culmination of the company’s growth story.

“We’re now at the beginning of that journey where 30 years young, 30 years more to go, where we could really start skyrocketing and becoming like a Massy or Bryden’s,” Gillette said.

The IPO closes on June 5.