Arawak Port Development (APD) announced its $8 million Initial Public Offering (IPO) during a recent forum well-attended by shipping stakeholders, The Bahamas Weekly reports. This highly-anticipated investment opportunity is set for October, and will be followed by a private placement to be launched upon completion of the new port and its subsidiary facilities.
Dion Bethell, CFO, APD gave details about the IPO: “It was agreed that both the private sector and the government would give 20 per cent of their initial investment toward the IPO, each group would give $4 million of the $20 million they had invested - which would go to the public at large. The whole idea is that the government wants a wide cross section of the Bahamian public to be able to participate in the IPO.
“At this time, we're working closely with our advisors to determine what the price would be when these shares do come to market. We envision that the minimum subscription would be between $500 and $1,000.”
Once construction of the new port and its subsidiary, the Gladstone Freight Terminal, is complete, a private placement will be launched for institutional investors. "When construction is complete in the first quarter of next year, we will have a private placement that will go out to the institutional investors, being the pension funds and the like. Money raised from that private placement will take out the [$30 million] bridge loan that we currently have with Royal Bank of Canada. The blend of take out will be a combination of preference shares and bonds. The preference shares would have a rate of about 6.3 per cent, while the bonds would have a rate of about 7.8 percent,” Mr. Bethell noted.
The new 56-acre port at Arawak Cay is scheduled to be operational by December, though construction will not be complete until April 2012. The 15-acre Gladstone Freight Terminal, to house a 100,000 square feet warehouse facility, will be complete in May 2012. However, shipping companies will begin relocation from Bay Street as early as January 2012, noted Michael Maura Jr., CEO, APD.
As shipping companies move their operations from Bay Street, prime real estate will be made available downtown. Charles Klonaris, Chairman, Downtown Nassau Project, welcomes this change: "I think, as we go forward, without question, the city has the ability, has the space, and the capacity to accommodate the commercial growth to come. Once the container ports are relocated, we will open up over 40 acres of space which really is prime in terms of facilitating residential and commercial properties and marinas.”
Dion Bethell, CFO, APD gave details about the IPO: “It was agreed that both the private sector and the government would give 20 per cent of their initial investment toward the IPO, each group would give $4 million of the $20 million they had invested - which would go to the public at large. The whole idea is that the government wants a wide cross section of the Bahamian public to be able to participate in the IPO.
“At this time, we're working closely with our advisors to determine what the price would be when these shares do come to market. We envision that the minimum subscription would be between $500 and $1,000.”
Once construction of the new port and its subsidiary, the Gladstone Freight Terminal, is complete, a private placement will be launched for institutional investors. "When construction is complete in the first quarter of next year, we will have a private placement that will go out to the institutional investors, being the pension funds and the like. Money raised from that private placement will take out the [$30 million] bridge loan that we currently have with Royal Bank of Canada. The blend of take out will be a combination of preference shares and bonds. The preference shares would have a rate of about 6.3 per cent, while the bonds would have a rate of about 7.8 percent,” Mr. Bethell noted.
The new 56-acre port at Arawak Cay is scheduled to be operational by December, though construction will not be complete until April 2012. The 15-acre Gladstone Freight Terminal, to house a 100,000 square feet warehouse facility, will be complete in May 2012. However, shipping companies will begin relocation from Bay Street as early as January 2012, noted Michael Maura Jr., CEO, APD.
As shipping companies move their operations from Bay Street, prime real estate will be made available downtown. Charles Klonaris, Chairman, Downtown Nassau Project, welcomes this change: "I think, as we go forward, without question, the city has the ability, has the space, and the capacity to accommodate the commercial growth to come. Once the container ports are relocated, we will open up over 40 acres of space which really is prime in terms of facilitating residential and commercial properties and marinas.”