Arawak Port Development Ltd. (APD) kicked off its road show this past week holding investor meetings in New Providence and Grand Bahama which garnered an enthusiastic response from hundreds of Bahamians who came to seek more information about APD's historic initial public share offering (IPO).
The meetings began with overflow crowds at the Harry C. Moore Library in Nassau and then traveled to Freeport and Eight Mile Rock, Grand Bahama, where APD executive management and placement agents also provided an overview of APD and its landmark IPO.
To date $62 million has been spent on the development of the Nassau Container Port and the Gladstone Freight Terminal, with $27.5 million being spent to deepen the port's draft to 27 feet. This will enable APD to accommodate larger vessels than the previous 16-foot draft at Bay Street, which should help to reduce the costs of shipping to the public. The entire project is expected to be completed by the second quarter of 2012.
APD shares, at $10 each, were made available on December 16 and will remain on sale until January 31. A minimum of 50 shares, at $500, must be purchased. In the end, the public will own 20 percent while Arawak Port Development Limited and the government will own 40 percent each.
The government recently announced that it will provide loans of up to $5,000 to civil servants who wish to invest in the Arawak Port Development initial public share offering. Mr. Kerr also noted that a bottom up approach will ensure that smaller investors receive first consideration for the one million ordinary shares being offered.
According to Dion Bethell APD's chief financial officer, proceeds of the IPO will be used to defray start up costs. "The minimum subscription is 50 shares or $500 in increments of 25 shares or $250 thereafter. As for the use of proceeds, we have a bridge facility with Royal Bank of Canada for $43 million. Our intention is to apply the proceeds from this IPO against that bridge facility," Bethell said.
Residents of Freeport and Eight Mile Rock expressed their views on the landmark investment opportunity.
Richard Thompson, a 29-year-old Grand Bahama resident, said this is the opportunity he has been waiting for.
"I'm here to secure something for my kids. I'm all about Bahamian ownership. I'm all about young Bahamians finally doing what I feel our forefathers were supposed to do," Thompson said.
John Swain, president of the Grand Bahama Chamber of Commerce, said at only $10 per share, the offering is a unique one.
"I would recommend it and intend to take advantage of it," Swain said.
The APD road show next travels to Abaco on Tuesday, January 17, followed by Exuma and Long Island on Wednesday and Governor's Harbour, Spanish Wells and Harbour Island on Thursday. For more details on meeting times and venues, interested persons may visit www.nassaucontainerport.com.
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