Home' Trinidad and Tobago Guardian : August 13th 2015 Contents The Energy Chamber of T&T
fully supports the policy of
offering shares in state-owned
energy sector companies to
the investing public in T&T.
On Monday, the National Gas Company
(NGC) launched its initial public offering (IPO)
for T&TNGL, which is a holding company for
a 39 per cent stake in Phoenix Park Gas Proces-
sors. According to a statement from the Energy
Chamber on Tuesday it believes that this IPO
will assist in deepening the local capital market
as well as contribute to building of the econ-
The Energy Chamber said: "Broadening
local capital markets and increasing oppor-
tunities for investment are important com-
ponents of overall economic development for
the country. Based on the positive experiences
of companies such as Ecopetrol in Colombia,
the Energy Chamber also believes offering
shares in state-owned companies in the energy
sector can strengthen their corporate gover-
nance and therefore improve their overall
NGC launched the IPO on Monday at the
Hyatt Regency Hotel and if the offer is fully
subscribed it could bring in as much $1.5 billion
for the company.
NGC is selling 75.85 million shares to T&T
individuals and companies at $20 a shares.
President of NGC, Indar Maharaj said the
company will not lose money as a result of
Finance Minister Larry Howai, who spoke
at the launch, said the IPO is in keeping with
the Government's policy of expanding the
Howai said safeguards are in place for this
IPO and what happened with the First Citizens
Bank IPO will not happen again.
He said external auditors are being used to
ensure the process goes smoothly.
The prospectus shows that NGC is offering
49 per cent of its total ownership in Phoenix
Park and the offer shall comprise of 75,852,000
of NGC's Class B shares which will be offered
for sale at an offer price of $20 per share.
T&TNGL's issued shares consist of
154,800,000 total shares, comprising
38,700,000 Class A shares and 116,100,000
Class B shares.
At the end of the IPO process, this would
give NGC an interest of 51 per cent in T&TNGL
and the public an interest of 49 per cent.
According to the prospectus, the Govern-
ment has outlined a capital market policy,
which seeks to widen and deepen the domestic
capital market as a means of expanding the
market economy through promoting efficiency
by exposing businesses and services to the
greatest possible competition, to the benefit
of the customer.
The prospectus also outlined that the IPO
will spread ownership as widely as possible
among the population thereby giving citizens
a direct stake in industrial success.
The securities are being allocated to:
• 60 per cent are allocated for the employees
of T&T NGL Ltd, Phoenix Park Gas Processors
Ltd, the National Gas Company Ltd, NGC
CNG Company Ltd, La Bea Industrial Devel-
opment Company Ltd and the National Energy
Corporation of T&T Ltd and the individual
investors who are nationals of T&T
• 10 per cent are allocated for mutual funds
including the T&T Unit Trust Corporation
• 10 per cent are allocated for the National
Insurance Board (NIB)
• 15 per cent are allocated for the registered
pension and other trust funds, credit unions
and cooperatives in T&T
• 5 per cent are allocated for other companies
registered in T&T
Ravi Suryadevara, president of
AmCham T&T, told the Business Guardian
on Tuesday that the Government had
declared its intent to divest these shares since
it paid ConocoPhillips US$600 million for
its 39 per cent stake in Phoenix Park Gas
Processors Ltd in 2013.
"I was present at the launch of the IPO
on Monday and we remain very hopeful for
this IPO. We are very happy to see 49 per
cent on the market. The prospectus seems
reasonable and the shares seem to be rea-
sonably priced," he said.
Speaking from the point of an investor,
Suryadevara described the IPO as a "sound
"This investment looks good and we hope
to see the public invest. Compared to other
listings on the stock exchange the dividends
look attractive," he said.
Vivek Charran, president of San Juan
Business Chamber, believes that the IPO
will be a success.
"More than 50 per cent of the gross
domestic product (GDP) of the country comes
from the energy sector and an investment
in this IPO will be a good investment. The
premise of the IPO is a good one which is
to have normal investors invest in the energy
sector. I hope it will stand the test of time
and it will do well," he told the Business
Guardian on Tuesday.
Referring to the controversy that surrounded
the last IPO from First Citizens, Charran said
he believes the issues of the last one were
taken into consideration when formulating
"The architect of this IPO has taken the
issues into consideration and they have closed
up the loopholes. T&T will prosper once we
remain a competitive player in the global energy
market," he said.
David Edwards, president of the Tuna-
puna Chamber of Commerce, said that
this IPO will benefit the country as it gives
the ordinary person an opportunity to invest
in this lucrative sector.
"This IPO will be successful. The business
community believes that what took place
with the last IPO will not take place with
this issue. There appears to have been insider
trading with the First Citizen IPO. On the
face of it, there appears to be more avail-
ability to the public with this NGC IPO," he
He noted that the Government has always
used public funds to invest in the energy
sector and now allowing the public to buy
into T&TNGL shares is allowing the wealth
to be shared.
"This is a good way for the general public
to buy and invest in successful public com-
Daphne Bartlett, president of the San
Fernando Business Chamber, expects
that the IPO will lead to greater wealth cre-
ation in the country.
"What this will lead to is the scope of
citizens buying state resources. It will also
give the Government the opportunity to
raise greater capital for money it needs for
BUSINESS GUARDIAN www.guardian.co.tt AUGUST 13 • 2015
On National Gas Company's IPO launch...
Energy Chamber: This will
deepen local capital market
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