FirstCaribbean scraps plan to list shares on New York Stock Exchange
WILLEMSTAD – FirstCaribbean International Bank Limited (FCIB) has withdrawn its recent public offering in the United States and is no longer pursuing a listing of its shares on the New York Stock Exchange (NYSE).
The Barbados-based regional financial institution was looking to raise up to US$240 million in its initial public offering (IPO) of 9.6 million shares for between $22 and $25 on the NYSE. But in a statement issued yesterday, it said it would no longer pursue that course, “in view of market conditions at this juncture”.
However, FirstCaribbean, which is currently listed on the Barbados Stock Exchange and the Trinidad and Tobago Stock Exchange under the same FCI symbol it would have used on the NYSe, gave no explanation for the decision.
The initial plan had been seen as a precursor to parent company CIBC’s departure from the region.
In fact, the decision to scrap the IPO and NYSE listing comes on the heels of CIBC announcing that it was selling its 91.5 per cent shares in the regional operations on the North American market.
Debra King, the director of corporate communications with FirstCaribbean, had said at the time that “in the event that FCIB proceeds with the listing, [CIBC’s] intention would be to subsequently reduce its stake in FCIB, as it makes sense to do so”.
“The IPO of FCIB will allow CIBC to reallocate capital and senior management focus to areas of growth for them,” she added.
CIBC spokesperson Tom Wallis is quoted by The Globe and Mail as saying that while exploring a listing in the United States is “an interesting avenue”, it was not “a necessary one to advance our long-term strategy”.
He added that FirstCaribbean continues to perform very well and is “accretive to our business”.
FCIB has an estimated US$12.4 billion in assets and earns most of its revenue from Barbados, The Bahamas and the Cayman Islands.