Bank of The Bahamas, on the heels of record growth that topped the 30% mark last year, today announced a $25.2 million rights offering to support its continued growth.
The rights offering is set to open November 25 and close December 20. Registered shareholders as of November 21 will get first option on 3.6 million shares at $7 per share. In the event that all rights are not applied for, current as well as new shareholders may apply for the unsubscribed shares until the offer fully closes in December.
“Bank of The Bahamas has experienced phenomenal growth in the past three years due to a number of factors, including the introduction of new products and expanded services,” explained Managing Director Paul McWeeney. “Last year, our growth exceeded 30% and in the last fiscal quarter, we marked a significant milestone, reaching the half billion dollar mark in total assets. The purpose of the share offering is really twofold, to raise funds to support that growth, allowing the bank to meet next generation needs, and to broaden the shareholder base.” There are approximately 4,000 shareholders making it one of the most broadly held Bahamian companies. Although the bank plans to build new headquarters just west of the heart of downtown Nassau on West Bay Street, monies raised from the offering will not be used toward the new corporate offices and financial centre project.
Colina Financial Advisors, which is the corporate advisor for the offering, called Bank of The Bahamas “uniquely positioned – Bank of The Bahamas, as one of the most broadly held Bahamian companies, has already positioned itself to take advantage of its diversification as a full service bank with international and as a well estate planning growth opportunities. “
Share price was established and approved prior to the share value’s dramatic increase in recent months.
This is Bank of The Bahamas’ third public offering. Each prior offering has been oversubscribed and financial analysts outside the bank believe this will be the most sought-after yet. The government of The Bahamas, including the National Insurance Board, currently holds some 51% of the nearly 12 million common shares issued, but leaves day-to-day management to the bank’s strong executive management team, headed by McWeeney, who also heads the Clearing Banks Association, and policy decisions to a board of directors headed by veteran banker Alfred Jarrett. The bank has chalked up a series of firsts in commercial banking. In 2000, it became the first financial institution to offer trust services for Bahamians and in the five years since, its trust subsidiary, Bank of The Bahamas Trust Limited, has risen to a position of national responsibility with oversight to safeguard the management of substantial pension funds. In 2004, it introduced comprehensive online banking, becoming the first institution in the region to provide cheque imaging, allowing customers to see cancelled cheques within a day or two of their clearing the bank. It expanded merchant card services, was named the exclusive American Express The Platinum Card representative, introduced credit maximization seminars and workshops for businesses, created a high-interest-rate, long-term savings plan to encourage savings for education and launched its ambitious reduced rate mortgage campaign with fairs on three islands.
When its Miami branch opens, it will be the first Bahamian bank to export its services, making it easier for Bahamians to access their local bank when they are conducting personal, medical or commercial business in Florida. And when its new headquarters and financial centre opens, it will be the first major corporate office complex in The Bahamas to include a childcare centre for persons working in the building.
The bank’s forward-looking policies have paid off. At fiscal year-end June 30, it reported an annual net income of more than $7 million. Assets leapt from $384 million at year-end in 2004 to $453 million in 2005 and have climbed nearly another $50 million in less than six months since. Earnings per share stood at $.59, up from $.50 the previous year.
Offering circulars and share application forms will be available at Colina Financial Advisors, Goodman’s Bay Corporate Centre, West Bay Street and at any of the bank’s branches in New Providence, Grand Bahama, Andros, Inagua or San Salvador after November 25.
Source: The Bahama Journal
