State bank First Citizens’ initial public offering (IPO) has been oversubscribed 3.12 times, or by $3 billion, the company’s chief executive Larry Nath said yesterday.
Nath told the Express in a telephone interview that as one of the largest IPO oversubscriptions in the country’s history, this demonstrated the population’s eagerness to gain ownership in one of the country’s most successful financial institutions.
The IPO’s value was an estimated $1.1 billion, or just about 20 per cent of the government’s 100 per cent stake in the bank.
Along with Government, almost 13,000 individual investors can say they are now part owners of a successful commercial bank.
Individual investors purchasing 1,000 shares or fewer will receive 100 per cent of their application.
“This is good because that covers almost 60 per cent of individual investors,” Nath said.
For investors purchasing more than that, shares will be distributed on a pro rata (proportional) basis of 15 per cent because of the sheer oversubscription, he said.
He added that from today, refunds for the difference will start being distributed, and further information will be mailed to subscribers.
The IPO was launched officially on July 15, and closed August 12. The shares will be listed on the Trinidad and Tobago Stock Exchange from September 16 under the code FIRST.
“I am extremely proud of the bank, management and staff for seeing the IPO through. I think it’s a milestone and a wonderful occasion for the country and the Ministry of Finance and the State in that their divestment strategy involving citizens has gone smoothly. I think it’s a wonderful opportunity for individuals and indigenous institutions to own a piece of a very successful bank. It’s a new journey for new shareholders,” Nath said.