NASSAU, Bahamas — BISX-listed FOCOL Holdings is on a capital markets “reconnaissance” mission to determine its best finance-raising options as it “very aggressively” seeks to position itself for growth post-COVID-19, The Tribune, one of The Bahamas’ leading newspapers, reported on May 21 in a article written by Business Editor Neil Hartnell.
Sir Franklyn Wilson, the company’s chairman, told Tribune Business it was in the early stages of a scouting mission to gauge investor appetite, and the amount and type of capital it could raise, as it moves to “fulfill that vision” of being a major player in The Bahamas’ economic rebuilding after the pandemic.
Responding after this newspaper was informed that FOCOL Holdings was eyeing a $40m raise, Sir Franklyn said he could not confirm that number as no decision had yet been taken to tap the capital markets. However, he revealed that the petroleum products supplier may seek “more, less or none depending on how aggressive we become”.
And he disclosed that an equity raise, which would give existing or new investors an opportunity to own part of FOCOL Holdings, was among the options being considered. Sir Franklyn argued that this, rather than the debt financing issues that Bahamian companies typically use, was the only true way to forge “a real partnership” and give Bahamians greater ownership of their own economy.
“FOCOL has been reporting some very positive results, and our results to the end of April, which will be coming out soon, speak for themselves,” he told this newspaper. “We are very optimistic about the future of the country despite this temporary [COVID-19] setback we’re dealing with, and we’re being very aggressive in trying to ensure the company is properly positioned to assist in the future transformation of the nation.
“That will require us to have the capital to do some big things, and in that regard we’ve been doing some reconnaissance to see what’s happening in the capital markets…… I can confirm to you that we have been doing that to get a sense of what is happening in the capital markets despite COVID-19 and all the challenges facing the country,” Sir Franklyn said. “The context of doing that is we have a vision to be part of the redevelopment of the modern Bahamas. We’re in the mood. We’re talking to people we believe can tell us what’s really happening.”
Sir Franklyn added that FOCOL Holdings was in the early stages of its exploration, but it had drawn significant encouragement from the recently-closed $130m bond offering by Nassau Cruise Port that was oversubscribed.
“We are absolutely delighted and pleased to learn of the success of the port’s offering, because that validates our hope and prayer that there is significant capital still in the system,” he said. “Their success despite COVID-19 is very significant, and notable and commendable.” See full Tribune story at http://www.tribune242.com/news/2020/may/21/focol-scouting-for-capital-raise/
