First Caribbean Bank Withdraws IPO Registration

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First Caribbean Bank Building

First Caribbean Bank (FCIB) has withdrawn its registration to list its shares on the New York Stock Exchange (NYSE). The bank, which has its headquarter in Barbados, explained on Thursday that the submission has been withdrawn due to ‘market conditions’ in the US. It did not specify the US ‘market condition’ it was troubled by.

First Caribbean Bank filed a registration for its IPO, with the symbol FCI, in December 2017. In its prospectus to potential investors, FCIB indicated the growth the company has achieved over the years. It made mention of the growth in markets in Jamaica, Trinidad and the Dutch Caribbean. An example was provided of the company’s loan book which grew by double digits in Jamaica, compared to the other banks whose loan books grew by single digits in 2017. Growth was also mentioned in retail banking and investment banking.

It was reported that First Caribbean Bank (FCIB) withdrew its application to list, the same day the New York Stock Exchange notified the United States Securities and Exchange Commission that the IPO was approved. FCIB had made changes to its registration statement stating the company would offer 9.6 million common shares between USD$22 and USD$25 and also that it intended to sell 1.4 million common shares outside the IPO.

For the financial year ending October 2017, FCIB reported net income of US$151.3 million from US$143 million two years before, a 6 percent increase. FCIB holds US$12 billion in assets in 2017 compared to US$11 billion the previous year, with a market capitalization of US$2 billion. Total revenue for 2017 was USD$547.4 million compared to USD$533.8 million; a 3 percent year over year increase.

First Caribbean Bank (FCIB) is not the first Caribbean based bank to withdraw its IPO registration on the NYSE. In 2013, NCB Group aborted its IPO and had to absorb $680 million in costs relating to financial fees. The bank has however recovered significantly from that situation as it has reported record profits in 2017.

Could FCIB be withdrawing its registration because of market volatility in the U.S.?

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