FirstCaribbean International Bank Limited announced the withdrawal of the U.S.-registered public offering and listing of its shares on the New York Stock Exchange. The bank blamed “market conditions” for abandoning its share offering plans at the last minute.
FirstCaribbean is a subsidiary of Canadian Imperial Bank of Commerce and operates in Barbados, the Bahamas and the Cayman Islands. It had filed to raise $226 million by offering 9.6 million shares at a price range of $22 to $25, and was due to start trading last Friday.
The proposed transaction was previously seen as a way for CIBC to divest itself of the Caribbean banking unit and to exit a region where earnings growth has been slow and the perceived regulatory risks are high.
Meanwhile, Tom Wallis, CIBC spokesman, told news agency Reuters that Canada’s fifth largest lender had decided a listing of the business in New York was not necessary to advance its long-term strategy.
“FirstCaribbean continues to perform very well and is accretive to our business,” he said. “Going forward, we remain focused on delivering diversified earnings growth and on ensuring that we deploy our capital in a disciplined way that benefits our clients and shareholders.”
FirstCaribbean is valued at $2 billion and generated $495 million in revenue in the financial year ending Jan. 31, 2018.