FAMGUARD

June 1998 Table of Contents - Current Issue of The Abaco Journal - Abaco Bahamas' Home Page

FAMGUARD SHARE OFFERING OVERSUBSCRIBED

The initial public offering (IPO) of shares launched on 30th March by FamGuard Corporation Limited, parent company of The Family Guardian Insurance Company, has met with great success. The IPO of 1,338,460 ordinary shares closed well oversubscribed on Friday 24th April.

Roscow Pyfrom, Chairman of the Board, has announced that the offering was subscribed by 238% and Bahamian shareholders of the company have increased by approximately one thousand.

"The issue was a great success," said the Chairman, "with many Bahamians wanting to share in the ownership of Family Guardian. We are delighted that our employees, policyholders, financial institutions and the general public at large have responded so favourably. I feel this is a great vote of confidence in Family Guardian and its place in the hearts and futures of the Bahamian people.

The oversubscription means that not everyone will receive the full amount of shares requested. Shares, however, will now be traded through local brokerage houses at a market value advertised daily in the local newspapers. As soon as the proposed Bahamas Stock Exchange opens, FamGuard intends to list the shares for trading on the Exchange.

Dick Coulson, Managing Director of RC Capital Markets, the financial advisor to FamGuard for the offering, said that the life insurance business is very significant in The Bahamas. "The life insurance business is a key element in the Bahamian economy - providing security for thousands of Bahamians and jobs for hundreds. The success of this offering underlines Family Guardian's prominent and respected role in this essential industry," noted Coulson.

Larry Gibson, Managing Director of Coutts Corporate Services, the escrow, registrar and transfer agent for the issue said, "We are pleased with the response and to be associated with the success of the FamGuard issue. This is another case where a well run Bahamian company has offered the opportunity for the general public to enter into ownership structure. This has been a success; it represents a strong vote of confidence in the future of the Bahamian economy."

Prior to the IPO, Roscow Pyfrom explained why the thirty-three year old company should go public and at this time: "It was really a question of when, not if," he said. "It has always been the management's goal to reach a point when we would be able to broaden the company's ownership through the offering of its shares to the Bahamian public. We felt that it should not be done until it was deemed right by us and our financial advisors. We also recognised the fact that we are a Bahamian institution. We wanted a wider and broader ownership of the company by Bahamians to stand us in good stead in a competitive market, such as exists today in the insurance industry in The Bahamas."

The shares were offered at $3.00 each with a minimum subscription of 300 shares for $900 and in increments of 100 shares thereafter. The public offer was approved by the Registrar of Insurance Companies, the Securities Board and the Central Bank of The Bahamas.

This Issue Table of Contents - - Previous Issues

Other Abaco Bahamas Links
Home Page (oii.net) - Message Board (AbacoBoard.com) - Latest Happenings (AbacoToday.com)