NCB chooses NYSE for IPO
Published:Wednesday | June 29, 2011 | 12:00 AM
National Commercial Bank has chosen Wall Street over Toronto to raise US$175 million of equity capital.
The bank's initial public offering has not yet been priced.
Requests for comment on the choice of the New York Stock Exchange for the cross-listing over Toronto Stock Exchange went unanswered.
NCB is one of Jamaica's most profitable commercial bank of seven. In its most recent half-year financial results, ended March 31, 2011, the bank reported net profit of J$6.12 billion, an increase of J$799 million or 15 per cent compared to the similar period last year. In 2010, it made record profit of J$11 billion, outclassing all other listed Jamaican companies.
At half-year 2011, all of the bank's business segments reflected growth, with the exception of corporate banking, which was impacted by one of its large loans falling into the non-performing category, as well as lower loan balances.
NCB is also Jamaica's largest bank by assets of J$347 billion, of which its loan portfolio accounts for J$88 billion. The banking group's growth throughout the recession has boosted the company's stock price to around J$25 at Tuesday's market close.
The stock has traded within a band of J$16.50 to J$26.99 in the past year.
The bank, which is owned 62 per cent by Michael Lee-Chin and his companies, is already cross-listed in Trinidad and Barbados.