IPO fever hits Barbados

With more than Bd$145 million (US$1=Bd$2) worth of initial public offerings scheduled to be issued on the Barbados Stock Exchange before January 2001, the country's money market will receive a much needed boost that may bring more life and interest from the local investing public. 
Some $115.48 million worth of stock is being offered by former statutory corporations - the Barbados National Bank (BNB) and the Insurance Corporation of Barbados (ICB), which were recently incorporated to participate on the market.
In November, the BNB put 50 million common shares at $1.80 each or $90 million worth on the market. This money is expected to come from individuals ($54 million) and through a private placement ($36 million) to the bank's institutional clients including credit unions. 
In December, another government-owned financial institution will inch towards wide public ownership when the ICB offers 19.6 million common shares at $1.30 apiece. 
The issue is expected to raise $25 million for the institution despite offering some of the shares to staff at a discounted rate. In addition, Government has issued a further $30 million worth of seven per cent treasury notes to mature in the year 2007.
The stock issues coincide with the time of the year when the advertising of mutual funds peaks and most companies pay staff bonuses and other cash incentives. As a result, Ôenriched' Barbadians as well as those with spare capital are on the lookout for investment opportunities in order to take advantage of the $10,000 tax credit offered for this financial year.
Apart from the $145 million worth of stocks and bonds offered by Government, regional airline BWIA West Indies Airways Limited expects to raise more than $24 million from its IPO which will be launched simultaneously in Barbados and other regional exchanges. The airline, which started operations in 1940, is selling 27 per cent of the company's ordinary share capital and voting rights and 23 per cent of the company's issued share capital at US$1.25 (approximately Bds.$2.50) a share. 
Investors can buy a minimum of 100 and afterwards in multiples of 50. Locally, the shares are being available through CIBC Trust and Merchant Bank. 
According to the BWIA's prospectus, the equity will be used to buy spare engines and major rotable parts for the company's fleet of new aircraft as well as finance the upgrading of its information technology and communication systems. 
In addition, the report said "a public listing will provide opportunity for the broadening of its regional shareholding base and for the company's customers to take a more significant interest in the company."