Public share offerings coming
A planned divestment of shares in the island’s lone airport and sea port and state owned oil company will get going in the coming weeks.
Following a June 2012 announcement by Minister of Finance Chris Sinkler that more than a quarter of the shares in the Grantley Adams International Airport Inc., Barbados National Oil Company Limited, and Barbados Port Inc would be sold, the Barbados Stock Exchange announced it was putting steps in place to make this a reality.
This included planning the necessary Initial Public Offering processes.
In its half year report released today, the BSE stated: “Over the next few months, a valuation of the entities will be undertaken and the IPO process initiated. The listing of these three major entities on the stock exchange will serve to inject some much needed life in the exchange. The IPO process will be undertaken in a manner that will ensure broad share ownership which promotes economic democracy and market liquidity.” Sinckler had said attention was being paid to the workings of the BSE given the crucial role capital markets played in economic development, “facilitating the movement of capital from savers to investors which serves to drive economic growth and development”.
“Investment as opposed to consumption is the ultimate driver of growth in an economy. The future growth and development of the Barbados economy is contingent on adequate funds being available and invested in the key areas that will drive the economy,” the minister said.
“While Barbados has developed a sophisticated and modern financial system, at present we are faced with a situation in Barbados, where there are high levels of liquidity in the financial system but an acute shortage of capital for investments in the economy. (SC)