|
Last Updated: Jan 23, 2012 - 1:44:54 AM |
Hundreds of potential investors turned out for APD’s first investor meeting at the Harry C. Moore Library, COB.
|
Arawak Cay 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 travelled 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.
Mike Maura Jr. APD’s CEO explained that by moving shipping operations away from Bay St., the $83 million redevelopment of the existing Arawak Cay Port into the Nassau Container Port (NCP) and the creation of the Gladstone Freight Terminal (GFT) represent some of the first major steps for the revitalization of Downtown Bay St.
He also said the partnership between government, the private sector group (of shipping companies and Bay St. property owners) and the Bahamian investing public will provide convenient and economical processing of international freight for residents of New Providence and the business community.
“What we will see very soon over the next three months is two customs transits sheds so everything that now happens at Thompson Blvd., which is the complete customs process, is now going to be available on Arawak Cay and it will also be available to importers at our Gladstone Freight Terminal which is where our less than container load cargo will be handled. So, it will be far more convenient to the public,” Mr. Maura said.
John Swain, president of the Grand Bahama Chamber of Commerce with APD CEO Mike Maura Jr. and Ken Kerr, President, Providence Advisors Ltd. at the investor meeting in Eight Mile Rock, Grand Bahama.
|
“They will no longer have to go down to the dock to pick up their shipping papers then go over to Thompson Blvd to pay their customs duties then go back to the dock. They can knock it all out at Arawak Cay or Gladstone Freight Terminal.” he said.
Mr. Maura added that there should also be more consistency in the customs process as a result of the relocation of the shipping industry to one area.
“We have one port gate operated by APD in partnership with Bahamas Customs. What we do expect to see is as a result of this consolidation of shipping activities to Arawak Cay, Bahamas Customs is going to be far more comfortable in their ability to manage, supervise and control the freight processing because they know that there is only one gate that those containers can pass through. It’s not a situation where it’s spread across six docks,” Mr. Maura said.
“The fact that they have better control is going to create a situation where there is far more consistency for the business community because you only have one process to have to comply with as opposed to six different processes that actually occur today on the various docks,” he said.
A potential investor asks questions during the Nassau Investor Meeting.
|
APD is the result of a Public Private Partnership established by the Memorandum of Understanding between APD and the Government as a 50/50 joint venture and is the operating company for the NCP and GFT. As a result of the MOU and this Offering, the government and the public will now collectively own 60% of these port operations.
According to Mr. Maura other sites such as the proposed Southwestern Port at Clifton Pier were actively considered for the Nassau Port prior to the 2010 MOU but, ultimately, after two studies funded by the founding shareholders, it was decided that it was more feasible to expand and refurbish the existing Arawak Cay Port Location at $83 million versus an estimated $235 million Greenfield Development cost for Clifton Pier.
To date $62 million has been spent on development of the Nassau Container Port and the Gladstone Freight Terminal, with $27 and ½ 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 St. 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 per cent while Arawak Port Development Limited and the government will own 40 per cent each.
Ken Kerr, President of Providence Advisors outlined several attributes that make the IPO an attractive long-term investment opportunity including, a strong experienced management team, the Port’s 20 year exclusivity agreement with the government and its 45 year lease on the property.
“Containerized shipping accounts for 80% of world trade. Ninety –five per cent of what we consume in New Providence comes via ship so if we have one port and ninety-five per cent of those goods come in that underpins the financial viability of the business model. So that strengthens it in our estimation and makes it a good opportunity,” Mr. Kerr said.
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.
Cassieta McIntosh, president of the Rotary Club of Lucaya with APD executives and financial advisor. Pictured from left to right: Mike Maura Jr. , CEO, APD; Cassieta Mcintosh; Ken Kerr, President Providence Advisors Ltd.; and Dion Bethell, CFO, APD.
|
According to Dion Bethell, 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,” Mr. Bethell said.
Residents of Freeport and Eight Mile Rock expressed their views on the landmark investment opportunity.
Richard Thompson, a twenty-nine 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,” Mr. Thompson said.
Potential investors listen intently at an investor meeting in Eight Mile Rock, Grand Bahama.
|
John Swain, President, 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,” Mr. Swain said.
The APD road show next travels to Abaco on Tuesday, January 17th, followed by Exuma and Long Island on Wednesday and Governor’s Harbour, Spanish Wells and Harbour Island on Thursday. For more details on meeting on times and venues interested persons may visit www.nassaucontainerport.com.
(
TCL Photos by Wendell Cleare and Dominique
Thompson
)
© Copyright 2012 by thebahamasweekly.com
Top of Page
|
