Last update: 09-Dec-2013 1:43 am
Monday, December 09, 2013
Trinidad & Tobago Guardian Online
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Executive director: UTC profits from IPO
Investing in the First Citizens initial public offering (IPO) was lucrative for the Unit Trust Corporation (UTC), says its executive director Ian Chinapoo, with the investment company’s paper profits at $79 million after one month.
UTC applied for and received 6.06 million shares in the First Citizens IPO, which was exactly half of the 25 per cent of the shares offered to mutual funds and 12.5 per cent of the 48,495,665 shares sold by the Government, Chinapoo said in an interview with the Business Guardian on Monday.
The acquisition of shares makes the UTC one of the largest holders of First Citizens shares coming out of the highly successful share sale and one of the single largest First Citizens shareholders apart from the Government, which retained 80 per cent of the company.
Chinapoo said: “There was a specific allocation for the mutual fund industry, of which UTC is a part. We bid and we were able to get our full allocation in the IPO. We would have bid for our full allocation, so I think we would have ended up - the mutual fund industry was allocated five per cent, we would have received 2.5 per cent of First Citizens” overall.
The UTC spent $133.32 million acquiring the 6.06 million shares at $22 each. Those shares are worth $212.1 million today at $35 a share each—a profit of nearly 60 per cent in one month for T&T’s largest and oldest mutual fund company.
“The market has gone up and that’s always wonderful. Our initial investment has already appreciated in value and the investment was made across several of the funds. All the unitholders, I expect, would have benefited from that. My only regret was that it wasn’t a bit more, so that we could have invested more,” he said.
Chinapoo, who took up the appointment as executive director of the Unit Trust Corporation (UTC) in June, spoke to the Business Guardian on Monday at its Independence Square, Port-of-Spain head offices.
He was appointed by the UTC board, which is chaired by former Finance Minister Wendell Mottley.
Chinapoo, a graduate of St Mary’s College, brings to UTC his experience in the banking sector having worked for Citibank International in Miami and CIBC FirstCaribbean. For him it’s all about bringing new things to the organisation.
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