The GOJ’s divestments had an unqualified positive impact on
market development in the following areas, viz:
a. Public awareness/education. There was a massive public
awareness campaign in selling NCB. For the first time
a broad cross section of the population became familiar
with the terms “share”/“stock” and the “stock market”.
b. After divestment there were 33,000 plus NCB
shareholders on the register; Caribbean Steel’s register
was 50,000 plus.
c. NCB was offered to the public at a material discount on
book value, so the first time subscribers made a quick
capital gain on the secondary market. This was good and
bad, in that some investors thought that share prices
could only go up. This was not the case with the CCC’s
share price after divestment, because the issue was fully
priced (maybe overpriced) first time subscribers lost
money in the secondary market.
Divestment programs in the other markets had much less
impact.
The First Citizens’ public offer was a win-win for all
involved. The offer for TTD1 billion shares was three times
oversubscribed. There were 12,000 plus shareholders and
the price on the secondary market has appreciated by sixty
percent since listing on 16 September, 2013.
Table 3: Barbados Securities Exchange (BSE) Companies
Issuer
Offer Period
Offer
Price (BSE$)
Initial
Issued &
Outstanding
# of
Shares
Offered
Total
Subscription
# of S/holders
Barbados National Bank Incorporated
Dec. 2000
$1.80
96,000,000
41,935,500
20,370,272
1,798
Insurance Corporation of Barbados Limited
Jan. 2001
$1.30
39,840,000
19,521,600
12,248,145
2,283
# of
Shareholders
at Offer
Current # of
Shareholders
Source: BSE
Table 4: Eastern Caribbean Securities Exchange (ECSE) Companies
Issuer
Offer Period
Offer Price
(EC$)
# of Shares
Offered
Status
Anguilla Electricity Company Ltd
Jul. 2003
Sep.2003
2.50
6,000,000
1,135
1,139
Unlisted
Bank of St Vincent & the Grenadines
Dec.2012
Jan.2013
8.64
2,000,000
1,632
1,840
Unlisted
Cable & Wireless Grenada
Mar.2008
Jun.2008
12.50
4,000,000
1,160
1,183
Unlisted
Cable & Wireless St Kitts & Nevis Ltd
Feb.2008
Mar.2008
5.00
16,611,538
3,327
Listed
Current # of
Shareholders
% of Total
Market Cap
as at 31.10.13
Source: ECSE
Table 5: Trinidad and Tobago Stock Exchange Companies
Issuer
Offer Period
Offer Price
(TT$)
# of Shares
Offered
National Enterprises Limited
Mar.2001
4.00
50,000,000
7,516
National Enterprises Limited
Sep.2002
4.75
53,675,300
7,516
9.51%
PLIPDECO Limited
Oct.1981
1.75
3,854,192
2,475
0.13%
National Flour Mills Limited
Jun.1995
2.10
60,100,000
6,497
0.10%
First Citizens Bank Limited
Sep.2013
22.00
48,495,665
12,155
7.80%
Source: TTSE
60
Caribbean Investment iQ December 2013