The Superintendencia del Mercado de Valores (SIMV) approved on 6 April 2022 the Dominican Republic’s first common stock issuance. The placement is made by César Iglesias by BHD León Puesto de Bolsa and Inversiones Popular – Puesto de Bolsa.
César Iglesias is a company with over 100 years of history, close to 3,000 employees and more than 60 mass consumer brands. It is now the first business to offer its shares for sale to the general public.
“This was achieved thanks to the result of a strategic renovation, planned and executed during the last five years,” said César Iglesias’ chairman of the board, César Armenteros Iglesias.
At the placement, Minister of the Presidency Lisandro Macarrulla said: “This is a transcendental step forward for our evolution as a nation that aspires to occupy a leading position among the main economies of Latin America.” Macarrulla highlighted the support given by President Luis Abinader to the securities market. Within the first year of the Abinader administration, Law 163-21 was passed for the promotion of the placement and commercialization of publicly offered securities. The placement gives Dominican companies access to the capital markets, an important source of low cost funding for company operations.
“The significant growth shown by the capital market in recent years has set the stage for financing through the issuance of shares to become an option par excellence for companies wishing to create, preserve and multiply their value in the market,” said Olga Nivar, director of Public Offerings at SIMV.
Superintendent of the Securities Market Gabriel Castro called the placement “a milestone that we celebrate as it is the opening of new opportunities for companies to be more competitive in a globalized environment and for individuals to expand their investments”.
According to the executive vice-president of the Dominican Republic Stock Exchange and Securities Market (BVRD), Elianne Vílchez, “the market is the great winner of the approval of this issuance program.” He spoke of how the stock exchange and securities market agents have worked in unison and tirelessly for this first placement that positions the country as one of the markets that has shown the greatest dynamism in the region.
César Iglesias was accompanied by a multidisciplinary team of specialists. In addition to INVESTA Capital Partners, BHD León Puesto de Bolsa, Inversiones Popular-Puesto de Bolsa and Squire Patton Boggs Peña Prieto Gamundi, Deloitte collaborated as valuers of the shares. Fitch Ratings and Feller Rate were the company’s risk raters.
The placement of these shares will begin with the symbolic act of the bell on a date to be announced.
Read more in Spanish:
Listin Diario
7 April 2022