First Citizens Investment Services gets 5% stake in Barita Investments

First Citizens Bank, which operates in the Eastern Caribbean, has acquired a five per cent stake in Barita Investments Limited (BIL).

The acquisition was made through wholly-owned subsidiary First Citizens Investment Services Limited (FCIS) of Trinidad and Tobago, a fully-owned subsidiary of FCB.

FCB is a publicly traded company on the Trinidad and Tobago Stock Exchange with just over US$6 billion in assets and equity of over US$1 billion.

The investment bank has an investment grade credit rating of BBB- by Standard & Poor’s.

FCB subsidiary FCIS, the announcement from BIL said, is a registered securities broker-dealer in the countries in which it operates, namely, Trinidad & Tobago, St Lucia, Barbados and St Vincent and Grenadines.

FCIS itself has total assets under management of approximately US$3.2 billion, which includes both proprietary and client assets.
The company offers investment management products and services to its customers.

In September Barita Investments Limited raised J$13.5 billion in its additional public offer.

The company issued 260,599,830 shares under the transaction.

The APO, which opened on September 16, 2020, was oversubscribed.

The offer ranged between J$49 per unit for small investors, through J$49.75 for hotel workers, farmers and civil servants, to  J$52 per share for Cornerstone Investors, Barita clients and other key investors.

Proceeds of the APO, the prospectus said, will be used to increase the company’s investment banking underwriting capacity and to upgrade the technology platform to a global platform.

The company said it will also be seeding new managed funds and expanding product offerings. It is additionally seeking retail footprint expansion, locally and regionally.

The new funds will be used for working capital support, it indicated in the prospectus.

Small investors were allotted 100 per cent of their subscription, with larger investors gaining about  70 per cent of subscription.