The Tribune

By AVA TURNQUEST

Tribune Staff Reporter

aturnquest@tribunemedia.net

PRIME Minister Hubert Ingraham yesterday urged Bahamians to take advantage of the landmark initial public offering of the Arawak Port Development (APD).

In an historic bid to further build a “share-owning” society, Mr Ingraham announced that persons employed by the government for more than five years will be eligible to apply for a salary advance to facilitate the purchase of shares. The advance will serve as an interest-free loan, repayable to the Treasury Department over a 12-month period.

“Weekly paid persons who have been working for the government for five years or more and have not been made permanent will be treated as though they are permanent for this exercise,” he said.

“Which will also mean that some persons in local government in the Family Islands will also benefit as a result of this.

“Policemen, teachers, nurses, customs, immigration, public servants in general administration, public corporations, Bahamasair employees will all benefit,” he said.

Private sector companies and the government own 40 per cent each of APD shares, with 20 per cent shares now available for public offering.

Potential investors will be purchasing shares virtually risk-free, said ADP general manager Mike Maura, who underscored the IPO’s “awesome” benefits for both Bahamians and the government.

The Gladstone Road freight terminal is expected to be completed by the end of February, with the port operational in March. The facilities will allow for the consolidation of Customs and Immigration services, which opens up the possibility of 24/7 port services, Mr Ingraham said.

While nearly 100 per cent of the deal has been subscribed, CFAL principal Anthony Ferguson, financial advisers/placement agents, explained that larger investors will not be allowed to dominate the offering due to the “bottom up” process.

The first 50 shares of each applicant is honoured first, and in subsequent tiers, Mr Ferguson said.

Each share costs $10, with a minimum purchase of 50 shares. Additional shares must be purchased in multiples of $25. The maximum number of shares that may be purchased through salary advance will be 500.

While Mr Ingraham encouraged civil servants to purchase as many shares as possible, the prime minister also underscored the need for fiscal responsibility. He added: “Indeed, these shares are so valuable that I dare say banks would lend deserving borrowers monies to buy them.”

Yesterday, Mr Ingraham said the IPO marked his administration’s commitment to deepening and broadening the ownership in the economy.

“The ownership of cargo ports in New Providence has been controlled for many years by a small number of families, including the Kellys, the Symonettes, the Farringtons, and the Bethels,” Mr Ingraham said.

“It proved to be a very profitable business for those families. Now we seek to make it profitable for a wider cross section of our population.”

The journey to a “share-owning” society began during the Free National Movement’s first term in office with the offering of 49 per cent of shares in the Bank of the Bahamas, Mr Ingraham said.

Investment opportunities continued, he said, with the issuance of Treasury Bonds for the second Paradise Island bridge; shares in Cable Bahamas upon the introduction of cable television services; the creation of the Bahamas International Stock Exchange (BISX); and 25 per cent of shares in Commonwealth Brewery as condition of its purchase by Heineken.

Mr Ingraham said: “The (Bank of the Bahamas) shares originally sold for $2.50 are now valued at more than $6.24 per share. At their high point they were valued at more than $9.

“Shares in Cable Bahamas were made available to Bahamian citizens at a cost of $1 per share. Today, shares in Cable Bahamas trade at $8.38.”

The deadline for applications is January 31; however, public service applicants who wish to take advantage of the salary deduction offer should file documents by January 24.

Mr Ingraham cautioned future shareholders – specifically within the public service who may be targeted by investors – not to sell any of their shares for at least three years, and to reserve some shares as they were worth far more than the sale price.

APD executives are taking the company's $10m share offering to the Family Islands today, launching a series of investor meetings. The prospectus can be found at www.nassaucontainerport.com.