The Tribune

By NATARIO McKENZIE Tribune Business Reporter nmckenzie@tribunemedia.net THE Arawak Port Development (APD) initial public offering (IPO) has raised 'north' of the $10 million subscription target, Tribune Business was told yesterday, with interest reaching a "heightened pitch" since the Government announced an interest-free salary advance option for civil servants to purchase shares. Jamaal Stubbs, senior research analyst at CFAL, one of the IPO's placement agents, told Tribune Business: "The offering has been going pretty well. Given that we have a bottom up process, all orders that meet the minimum order will be accepted. "At this point I can confirm that we are in excess of $10 million in terms of orders received thus far, but that is not to discourage the small man from placing an order because they will receive their orders." He added: "The larger orders, which tend to be the institutional orders, will see the shortfall more than the small orders. I can confirm that much; it's definitely north of $10 million in terms of indications we have received and cash in house." The $10 million IPO was launched back in December. The Government and private sector have each invested $20 million into the Arawak Cay Port, and once the IPO is completed, the Government and private sector will each own a 40 per cent stake, with the public holding 20 per cent. A $40 million private placement, scheduled for next year, is designed to replace the original line of Royal Bank of Canada credit financing taken out for the construction phase. APD and its financial advisers/placement agents, CFAL and Providence Advisors, had initially hoped to launch the IPO in late September/early October, but discussions between the Government and private sector on how to structure ii put it back to a December launch. Prime Minister Hubert Ingraham announced earlier this month that the Government would be providing a salary advance to give civil servants an opportunity to invest in APD's IPO. At that time, APD executives said that around 80 per cent of the one million shares had already been subscribed for. The 'bottom up' approach to allocating the offering's proceeds means, however, that those who invest by the January 31 deadline are guaranteed the $500 minimum subscription. With regards to the response from civil servants to the Government's offering, Mr Stubbs said: "That has definitely sparked a lot of interest. We have seen a lot of activity since that announcement. It's now at a heightened pitch. We don't normally recommend burrowing to purchase shares, but given that it is interest free in this case, it's a pretty sweet deal for civil servants. APD shares are presently valued at $10, and there is a minimum share subscription of 50 shares or $500 dollars for the IPO, with additional shares to be purchased in increments of 25. The deadline for the IPO closd is January 31.