T&T investment bank acquires 5% stake in Barita
First Citizens Investment Services Limited (FCIS) of Trinidad and Tobago has acquired a five per cent stake in Barita Investments Limited (BIL).
BIL has advised that, following the closing of its additional public offer (APO), FCIS, a fully owned subsidiary of First Citizens Bank Limited (FCB), now owns the shareholding in the company.
FCIS, the announcement said, is a registered securities broker-dealer in the countries in which it operates, namely, Trinidad & Tobago, St Lucia, Barbados and St Vincent and Grenadines. It has total assets under management of approximately US$3.2 billion, which includes both proprietary and client assets. The company offers investment management products and services to its customers, the release said.
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. The investment bank has an Investment Grade credit rating of BBB- by Standard & Poor's.
In September, Barita Investments Limited raised J$13.5 billion in an APO. The company issued 260,599,830 shares under the transaction.
The APO which opened on September 16, 2020, was oversubscribed. The offer ranged between J$49 per unit for small investors, through J$49.75 for hotel workers, farmers and civil servants, to J$52 per share for Cornerstone Investors, Barita clients and other key investors.
Proceeds of the APO, the prospectus said, will be used to increase the company’s investment banking underwriting capacity and to upgrade the technology platform to a global platform.
The company said it will also be seeding new managed funds and expanding product offerings. It is additionally seeking retail footprint expansion, locally and regionally.
The new funds, it was also indicated in the prospectus, will be used for working capital support to “develop talent, brand and operating capacity to accommodate the existing growth trajectory.”
Small investors were allotted 100 per cent of their subscription, with larger investors gaining in the region of 75 per cent of subscription.