NCB Merchant Bank launches GoIPO | Local company
ARE YOU an investor who would like to participate in the Additional Public Offering (APO) of shares of First Citizens, which is tentatively scheduled to open on June 21st, but prefer not to spend time in your stockbroker’s office? securities verifying information and filling out forms?
If so, NCB Merchant Bank Trinidad and Tobago (NCBMBTT) has the solution for you. This is called GoIPO.
It allows any T&T investor with a brokerage account to complete the application form for any public offering in this country from the comfort of their own home, hotel room in Miami or even on Pigeon Beach. Dot in Tobago.
Although GoIPO is a digital platform developed by NCB Capital Markets, the Kingston-based parent company of NCBMBTT, it will allow clients of any of T&T’s other six brokerages to complete an application form digitally. NCB Merchant Bank became T&T’s seventh securities broker when it received its license in June 2021.
The actual process of filling out the form digitally is straightforward, but applicants should ensure that they have their T&T Central Depository and brokerage account numbers available.
The process also involves uploading the signature document to the site and also uploading the applicant’s photo ID.
NCB Merchant Bank (T&T) Managing Director Angus Young said the value proposition for investors in public offerings to apply through the GoIPO platform is the unparalleled convenience and ease.
“Everything is digital, from anywhere, at any time, on any digital device and for any IPO/APO. It is accessible to everyone, as anyone can use GoIPO, regardless of broker alignment. You do not need to be an NCBMBTT customer. You don’t have to physically go to an office,” Young said.
He said GoIPO’s value proposition is improving as investors learn how to operate differently to deal with the Covid-19 pandemic.
GoIPO is an innovation born out of adversity…and the need to do something about it.
NCB Capital Markets was awarded the mandate to manage the initial public offering (IPO) of Wisynco Group, the leading Jamaican beverage manufacturer and distributor in December 2017.
This meant that the investment firm was processing over 8,000 requests, which was by far the most in the JSE’s paperless framework so far.
NCB Capital Markets CEO Steven Gooden admitted that “manual subscription processing has proven to be an administrative and logistical nightmare for NCB and the Jamaica Stock Exchange.” It involved hiring interns and working late into the night for teams of employees.
During the much-solicited IPO autopsy, the discussion focused on a simpler way to collect, collate and process IPO applications.
The company quickly focused on a digital subscription platform, which has been attractive to the Jamaican capital market which offers public offerings of shares much more frequently than in T&T.
GoIPO was launched by NCB Capital Markets in Kingston in April 2019, in time for Wigton Windfarm’s IPO.
GoIPO was also used as a vital component in the TransJamaican Highway IPO in February 2020, when over 30,000 applications were received. The digital platform processed 23,900 applications, in what was also a divestment by the Jamaican government. This means that nearly 80% of applicants have chosen to use the GoIPO to participate in another divestment by the Jamaican government.
Investors in ten IPOs or APOs since the platform launched in 2019 have used it.
Asked what he thinks would constitute success in terms of the number of investors in APO First Citizens using GoIPO, Young said, “We consider it a huge success to just be the first to launch GoIPO, which is the first of its kind in T&T and was also the first of its kind when it launched in Kingston. The launch of GoIPO in T&T will enable our greatest aspirations in the domestic equity capital markets space.
He said the digital application platform GoIPO will become a permanent feature of the local stock market. It will be deployed for the local small and medium enterprise (SME) IPO which NCB Merchant Bank plans to deploy in the near future, which awaits final regulatory approval.
Asked how NCBMBTT intends to iterate GoIPO in the future, Young said, “For us in T&T, GoIPO 2.0 will allow you to open a brokerage account with NCBMBTT online. It’s not unimaginable that digitally accessible margin financing is part of GoIPO’s future.
Finance Minister Colm Imbert announced in Budget 2022, which was tabled on October 4, 2021, that the government proposed to offer for sale an additional 10,869,565 ordinary shares of First Citizens Bank.