Published:Sunday 12:34 AM
Innovative Systems, a retailer of electronic products, has raised $220 million in a bond offer for accredited investors that will fuel its 2024 expansion. The company will add three locations in Kingston, Portmore, and Montego Bay, bringing its…
Innovative Systems, a retailer of electronic products, has raised $220 million in a bond offer for accredited investors that will fuel its 2024 expansion.
The company will add three locations in Kingston, Portmore, and Montego Bay, bringing its outlets to five.
“The business is a sleeping giant. And the bond will fund the expansion drive,” said Executive Chairman Garth Walker.
Innovative Systems currently operates two stores in Kingston. The proceeds of the bond, which offered investors a yield of 13 per cent, will also finance the renovation of its flagship retail store at the Sovereign Centre mall in Liguanea.
The electronics retailer is a member of the Growth-Tech group, which also holds stakes in Bumble Bee Digital Agency and Brain Boxx Solutions. Growth Tech was formed by Walker, Ryan Reid, and Neil Lawrence in 2017 but became operational in 2018, Walker said.
“By the end of November, we hope to have the new superstore location open,” said Walker without revealing the store’s location. “Then by the first quarter of 2024, we will renovate the Sovereign location. Thereafter we will expand to the other [local] territories,” he said.
The reported plan to enter the smaller towns of Morant Bay, St Thomas and Ocho Rios, St Ann, was said to be more of a long-term goal. That is because of Innovative’s stronger focus on business-to-business sales which, Walker said, obviates the need for a consumer store in those areas for the time being.
“St Thomas is something we have our eyes on, but we wouldn’t have that in the short term. And we prefer to go to Montego Bay before Ocho Rios because the business has grown from just a retailer to also a distributor in supplying the business-to-business market,” he said.
Innovative Systems was started by the Chang family in 1987 and was acquired by Growth-Tech in 2022.
“I cannot say what pertained before, but going forward, we are going to start importing more items which will give better yield and a wider product offering as well,” Walker said.