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Financial News

Oct 2012 Financial News

First citizens’ IPO launch

Oct 17, 2012

State banking group First Citizens is hoping to launch its Initial Public Offering (IPO) of shares by early next year, acting group chief executive Larry Nath has said.
In a brief interview with the Business Express after a post-budget breakfast meeting hosted by First Citizens Investment Services recently, Nath said the group was moving towards putting together approvals and also following the post-budget discussions for further details.

A potential 20 per cent divestment of the State-owned bank onto the local capital market was originally announced in last year’s budget, and reiterated again in this year’s presentation on October 1 by Finance Minister Larry Howai, who up until May had been the chief executive of First Citizens.

Since the announcement in 2011, however, there has been some wariness, by trade unions especially, that the IPO would somehow sacrifice the patrimony of Trinidad and Tobago and negatively impact citizens and workers as it would be selling one of the most profitable and well-run State enterprises.

"One has to listen to fears and understand the thinking behind it and we certainly have; that is why there was a further announcement that (shares) would not be open to international investment, to ensure employees and stakeholders and national interest groups and companies had a first crack at the IPO," Nath said.
Howai had said earlier at another post-budget discussion that even with the 20 per cent divestment, Government would still be the largest shareholder in First Citizens, as well as be able to raise capital (on the local market) for infrastructural development without resorting to borrowing. He also insisted that no one would be laid off in the process.

Nath also announced the launch of a new compendium of economic indicators that will be released monthly by the group to provide investors and researchers with accurate and recent information about the local investment landscape.
"We are trying to get a new set of economic information, for example, number of new cars bought every month, and containers cleared on the port, and use that as an earlier trend analysis. So instead of having information six months old you have it monthly, so you can see how trends are evolving. We will be going to the various interest groups (who would keep their own data on relevant industry information) and compile it to put together a comprehensive report, and we would also research the data ourselves to make sure it’s credible," he said.


Source:
By Carla Bridglal
Trinidad Express
Wednesday October 17, 2012

http://www.trinidadexpress.com/business-magazine/First-citizens-IPO-launch-174514381.html