Trinidad-based in­vest­ment bank buys into Barita In­vest­ments

First Cit­i­zens In­vest­ment Ser­vices takes 5%

Daily Observer (Jamaica) - - BUSINESS OBSERVER - BY DUR­RANT PATE Ob­server Busi­ness Writer

Trinidad’s First Cit­i­zens in­vest­ment ser­vices (Fcis) has bought into Barita in­vest­ments Lim­ited, tak­ing up five per cent of the com­pany’s shares in the re­cently suc­cess­ful ad­di­tional pub­lic of­fer (APO).

The Trinidad-based in­vest­ment bank, which is a fully owned sub­sidiary of First Cit­i­zens Bank Lim­ited, is now a mi­nor­ity share­holder in the Ja­maican in­vest­ment and bro­ker­age firm. The dis­clo­sure of the ac­qui­si­tion was made by Barita on Mon­day last in a reg­u­la­tory fil­ing with the Ja­maica Stock Ex­change, where its shares are traded.

FCIS is a reg­is­tered se­cu­ri­ties bro­ker-dealer in the coun­tries in which it op­er­ates, namely: Trinidad & Tobago, St Lu­cia, Bar­ba­dos and St Vin­cent and the Gre­nadines. In its reg­u­la­tory fil­ing Barita re­ported that FCIS has to­tal as­sets un­der man­age­ment of ap­prox­i­mately US$3.2 bil­lion, which in­cludes both pro­pri­etary and client as­sets, of­fers in­vest­ment man­age­ment prod­ucts and ser­vices to its cus­tomers.

The par­ent com­pany, FCB, is a pub­licly traded com­pany on the Trinidad and Tobago Stock Ex­change with just over US$6 bil­lion in as­sets and eq­uity of over US$1 bil­lion. It has an in­vest­ment grade credit rat­ing of BBB from the in­ter­na­tional rat­ings agency Stan­dard & Poor’s.

In its APO, which was closed two weeks ago, Barita raised a record $13.5 bil­lion in cap­i­tal, af­ter up­siz­ing the APO from the orig­i­nal of­fer of nine bil­lion. Barita said the move was a suc­cess­ful one given the sig­nif­i­cant par­tic­i­pa­tion of in­vestors de­spite the dev­as­tat­ing im­pacts brought on by the novel coro­n­avirus pan­demic along with its con­tract­ing ef­fects of the lo­cal econ­omy.

“The suc­cess­ful cap­i­tal raise of $13.5 bil­lion is the largest pub­lic eq­uity raised by a pri­vate sec­tor com­pany in Ja­maica and rep­re­sents the largest APO ever listed on the Ja­maica Stock Ex­change (JSE),” the com­pany stated, while not­ing also that based on the cur­rent mar­ket prices, this of­fer will push the in­vest­ment firm to be­ing among the top 10 largest com­pa­nies listed on the JSE by mar­ket cap­i­tal­i­sa­tion.

The suc­cess­ful APO has re­port­edly made Barita the largest listed se­cu­ri­ties dealer in Ja­maica by mar­ket cap­i­tal­i­sa­tion and by share­holder’s eq­uity.

Com­ment­ing on the suc­cess­ful APO, Barita’s deputy chair­man, Paul Simp­son re­marked, “The suc­cess of our APO was largely due to the ef­forts of the lead­er­ship team, who, dur­ing this un­prece­dented pe­riod, was able to suc­cess­fully ex­e­cute a land­mark trans­ac­tion in the Ja­maican cap­i­tal mar­kets. The team’s per­for­mance brings to mind a quote… ‘Rough seas make good sailors. ‘ ”

The Barita of­fice build­ing in New Kingston

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