The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Bahamas First yesterday delivered a $65m boost to the Bahamas International Securities Exchange (BISX) by becoming the first general insurer to list on it.

Patrick Ward, pictured, Bahamas First's president and managing director, told Tribune Business it had finally decided "the benefits of the listing outweigh any potential downside" after finally adding its ordinary and preference shares, as well as its bond, to the exchange.

Bahamas First, whose securities will begin trading on the exchange as of today, has been mulling its move from the over-the-counter (OTC) market for several years.

Mr Ward said BISX listing will aid its 255 existing shareholders by providing greater liquidity and price discovery through BISX's more "transparent" trading platform.

He added that it would also provide a platform for the company to raise additional financing in the future should the need arise, while the move would also open Bahamas First to investment by pension funds and other institutional investors whose rules restrict them to publicly-traded companies.

Bahamas First's 36,511,589 ordinary shares will begin trading at $1.63 on BISX today, with Mr Ward acknowledging that the listing's timing was delayed by a combination of Hurricane Dorian and COVID-19.

"I think there's no question that having a BISX listing provides our shareholder base with more liquidity in the trading of their shares," Mr Ward told this newspaper, "and there's no compelling reason not to list at this point.

"I think the fundamentals of the company are pretty strong, and over time the value of Bahamas First will be better served and realised because the shares are on a more transparent trading platform.

"Those are the initial benefits that come from just having the ability to have a more transparent trading platform for listing their shares, and potentially more liquidity from being on a more open trading platform."

Mr Ward said price discovery and liquidity for Bahamas First investors, seeking to determine a price for their holdings and sell/buy, were not as efficient in the over-the-counter market.

Suggesting that the yields on Bahamas First's $5m worth of preference shares, and $7.616m bonds, should prove attractive to investors, Mr Ward added: "We don't have any plans to issue additional shares, but in the event that were necessary it does give us an opportunity to use BISX's platform to do so.

"For institutional investors that have a requirement for a listing on a recognised exchange, it gives them an opportunity to consider holding Bahamas First ordinary shares because now we meet that requirement. Pension funds, in particular, have restrictions on holding shares in companies that are not part of a recognised exchange."

Keith Davies, BISX's chief executive, told Tribune Business that Bahamas First's $60m worth or ordinary shares - and $5m in preference shares - will add a total $65m in market capitalisation as measured by BISX's All-Share Index.

He added that Bahamas First had been "quite enthusiastic and gone all-in" to list on the exchange once the decision was made. It represents the first ordinary share listing on BISX since Arawak Port Development Company's (APD) initial public offering (IPO) in 2011.

Mr Davies described Bahamas First's move as "a shot in the arm" for BISX, and voiced optimism that it would show other companies the "viability" of listing on the exchange and creation of "a benchmark for additional funding in the future". The move also provides investors with greater investment choices and options.

"The listing process for Bahamas First was unique in that the entire process took place remotely due to the social distancing measures put in place due to the COVID- 19 pandemic," Mr Davies added.

"This was a unique listing process given those circumstances, but Bahamas First and BISX were able to communicate effectively and complete the process.

"We believe that Bahamas First made the wise decision to move its securities to the regulated BISX market, and we look forward to a truly beneficial continued relationship with Bahamas First."

Alison Treco, Bahamas First's chair, added: "Our listing on BISX has been a consideration for several year, and has now become a significant milestone for us as we begin our next phase of growth and development as a publicly traded and listed company.

"While we do not intend to issue any additional shares at this time, we believe that this move will facilitate an open trading platform that will provide increased liquidity for our existing shareholders while enhancing Bahamas First's visibility in the capital markets."