Almost immediately after it was officially listed on the Trinidad and Tobago Stock Exchange (TTSE) the collective demand for First Citizens’ shares was three million.
The offer to buy these shares was $25.30— $3.30 more than the opening price of $22—and the maximum daily 15 per cent price limit imposed by the TTSE.
Stock markets impose price limits to price volatility in order to protect investors from sharp fluctuations or imbalances in the buy/sell equilibrium or due to speculative trading, which are not in investors’ best interest.
Twenty minutes after its listing, the stock recorded its first trade with 1,000 shares being sold at the offer price $25.30
“People are holding on to these shares and are holding out for a higher price. In theory, the way the market works, share prices can go up or down in a 15 per cent range. Practically, one can expect this price going up another 15 per cent tomorrow,” chairman of the Exchange Subhas Ramkhelawan said.
The successful First Citizens listing on the TTSE is the culmination of an Initial Public Offer (IPO) for just under 20 per cent of the government’s stake in the bank. The IPO was launched on July 15 and at its close on August 12, it had been oversubscribed by three times its $1.1 billion value.
“It’s humbling to know there is such a great confidence—first demonstrated by the oversubscription and now this—that market has in the bank. We on the board, management and staff are really giving 115 per cent (inclusive of VAT) and we hope it’s upwards and onwards. We expect great things from the share,” First Citizens chairwoman Nyree Alfonso said.
This the second Government listing on the Exchange this year, after the Clico Investment Fund’s (CIF) launch on the Mutual Fund Market in January.
“The stock exchange very pleased that there have been two very successful listings this year—one is the CIF. Our experience is the value of trades in CIF as at the half year June 30 exceeds the value of all other shares, or was competing very closely. We want to hope, or look forward to a similar situation with regards to the First Citizens listing. In the budget (Finance Minister Larry Howai) mentioned (potentially several further State listings including) National Helicopters, the Vehicle Maintenance Company (VMCOTT) and the full divestment of Plipdeco and National Flour Mills... Those are some of the things that can help stimulate the market on equities side,” Ramkhelawan said.