Jul 2013 Financial News

FCB offers shares to TT

Jul 16, 2013

First Citizens Investment Services (FCIS) yesterday launched the Initial Public Offering (IPO) of 48,495,655 or 19.3 percent ordinary shares, formerly owned by the Corporation Sole – the government.

The offer price is $22 and the divestment of these shares will give nationals of TT a stake in the bank. The shares will have a market value of approximately of $1.1 billion. Leslie St Louis, manager Brokerage Services, said the share distribution will be: nationals - 15 percent, Corporations in TT - 10 percent, NIB - 10 percent, Credit unions/pension funds/other institutions - 25 percent and mutual funds including UTC – 25 percent. FCB staff in TT and its other branches in the Caribbean with more than one year’s service are eligible. Retirees of the Bank will be able to purchase shares. Employees will get shares at a ten percent discount for the first 5,000. Shares will be sold through brokers/brokerage firms and FCB’s Brokerage and Advisory Services (a subsidiary of FCB Investment Services) is the Lead Broker for the Offer for sale. The sale will close August 9 and shares will be listed on the local Stock Exchange on September 16.

FCIS held a media briefing for brokers yesterday at its office, Wainwright Street, St Clair to provide information on the offer to brokers and respond to their questions. Speaking to media, St Louis said there will be “no minimum to apply for – you can apply for one share or you can apply for 100 million shares, once you have the $22 per share cheque.” He said this would allow wider participation.

St Louis said the share offer was being kept open as long as possible so many people could participate. While no limit has been set for buyers, allocation of shares will be proportioned.

He said, “if you wanted ten million shares and you applied for ten million shares you will just be with all the others and we will apply basically pro rata (a method of assigning an amount to a fraction). It will be the number of shares you apply for over the total number of applications received multiplied by the number of shares available in that category.”

Persons interested in getting shares must provide a TT passport, or birth certificate and valid ID or naturalisation certificate and valid ID. They must have a savings or chequing account. Companies must provide a certificate of incorporation issued in TT.

The IPO was announced in the 2011 Budget by Finance Minister Winston Dookeran. In the Budget he announced the IPO but said it would not affect ownership of the Bank. At the time Dookeran said, “it will assist the bank in widening its capital base and so facilitate the expansion programme win which the Bank is currently engaged.”


Source:
Trinidad Newsday
Tuesday July 16, 2013

http://www.newsday.co.tt/business/0,180773.html