Make WICB public company

Addressing a initial public offering (IPO) conference hosted by the Chamber at the Hilton Trinidad yesterday, Mouttet explained that IPOs (the sale of equity in a company, usually in the form of shares) have yielded many positive benefits for family-owned operations, energy companies and state enterprises worldwide.

Drawing reference to the recent contract controversy (involving six WI players, including former WI captain Brian Lara) which threatened to derail the just concluded West Indies-South Africa series, Mouttet said: "It would be remiss of me not to comment on an IPO for the WICB. In light of the recent challenges experienced by the West Indies cricket team, perhaps the WICB should consider going public."

Unlike the recent purchase by American business magnate Malcolm Glazer of the majority of shares in English Premiership team Manchester United, Mouttet added that: "An IPO for the WICB will allow West Indians to own West Indies cricket which is after all one of the most valuable regional brands."

Mouttet said given moves towards the Free Trade Area of the Americas and Caribbean Single Market and Economy, regional businesses must restructure their operations and "an IPO will be one of the most successful strategies which you can employ."

However, he expressed concern that in a "risk-averse society" like TT, many businesses were viewing an IPO in terms of a possible loss of control and should instead look at the many benefits which could be accrued from an IPO.

The Chamber president identified access to capital for growth, improved credibility with business partners and increased ability to maximise shareholder wealth as some of those benefits.

Mouttet observed that when the TT Stock Exchange (TTSE) was established in October 1981, there were 35 listed companies and while that number has increased today to 37, there have only been nine IPOs during that time.

He also noted that among the companies not listed on the TTSE are family-owned companies and energy companies. On the latter, Mouttet drew reference to the privatisation of British Gas in the United Kingdom and how this resulted in renewed interest in the London Stock Exchange by ordinary citizens.He added that in 2001, there was the incorporation of the National Enterprise Ltd as a medium for divesting the shares of state enterprises but not much else in this arena since then.

Mouttet reiterated that it has always been the chamber’s view that privatisation of state enterprises should follow divestment.

Minister in the Ministry of Finance Christine Sahadeo has said Government is constantly reviewing its divestment portfolio and would divest entities which it finds no longer hold any strategic value.