Jun 2012 Financial News

Shares of Government entities up for grabs (Barbados)

Jun 27, 2012

BARBADIANS will soon get an opportunity to buy shares in three key Government entities. Yesterday Finance Minister, Christopher Sinckler announced that there would be an Initial Public Offering (IPO) of 30 per cent of the shares in the Grantley Adams International Airport, the Barbados National Oil Company Limited and the Barbados Port Authority.

Furthermore, the three entities will be listed on the Barbados Stock Exchange (BSE), the Minister revealed during presentation of his Budget. “Over the next few months, a valuation of the entities will be undertaken and the IPO process initiated,” he said, while noting that the listing will serve to inject much needed life into the BSE.

“The IPO process will be undertaken in a manner that will ensure broad share ownership which promotes economic democracy and market liquidity,” he said.

The Minister said there was a bank dominated capital market, an illiquid stock market dominated by a few large firms, an almost non-existent Junior Market, a National Insurance Scheme desperate for suitable investments and an economy facing an acute shortage of risk capital for the investment needed to drive a restructuring of the Barbados economy.

“However, we cannot afford to delay the much needed investments in energy efficiency, food production and upgrades of the hotel plant,” he stated.

According to him, “the traditional financial institutions are not providing the financing and we cannot wait on international capital, we must act now to secure our own future in Barbados.”

He also remarked about providing a fiscal incentive for companies to list on the Junior Market of the Exchange, where firms that choose to list on the BSE’ Junior Market will be provided with a tax incentive for 10 years. (JB)


Source:
Barbados Advocate
Wednesday June 27, 2012

http://www.barbadosadvocate.com/newsitem.asp?more=local&NewsID=25558