Paul Hoo (left), chairman of Supreme Ventures Limited, hands over the Supreme Ventures Super Challenge Trophy to CTL's executive manager for marketing, Millicent Lynch, and Dr. Paul Wright, representing the Thoroughbred Owners & Breeders Association (TOBA), for the $8.5 million three-race series for two-year-olds. The occasion was launch at the Knutsford Court Hotel on December 9, 2004. Supreme Ventures is part of a group bidding for Caymanas Park. - IAN ALLEN/STAFF PHOTOGRAPHER
SUPREME VENTURES wants to avoid those who just wish to make a quick profit from their upcoming $1.8 billion private placement.
Details of the issue are expected to be revealed tomorrow at a 'by invitation only' meeting at the National Commercial Bank's (NCB) Atrium building on Trafalgar Road, St. Andrew on Thursday.
AIC Canada's Trinidad & Tobago subsidiary, AIC Financial Services, will underwrite the placement in the Trinidad market while NCB's brokerage firm, NCB Capital Markets, is responsible for the Jamaican end.
The prospectus detailing the offer price and the internal operations and financials of the gaming company will be circulated at the meeting.
The private placement forms the basis for Supreme Ventures to carry out an Initial Public Offering (IPO) of its shares by November and then cross-list the company in Trinidad early next year
While brokers surveyed say that the private placement is as good as sold out, a burning question for some is just how long buyers will have to wait until they can resell the shares once they acquire them. It was reported that Supreme Ventures is keen on having their shares held for the long term.
Two brokers who requested anonymity shared opposing views on this matter.
The first said to Wednesday Business, "I need to know when I can sell back my shares after the initial public offer in November. The company says they want long-term shareholders but what does that mean? Six months? One year? If it is one year, then that sends up my cost of funds."
On the other hand, another broker said, "I don't think they will mandate that you hold on to the stock. I think they will convince people that Supreme Ventures is a stock to hold because they have an aggressive growth plan."
Speaking recently to the Trinidad Guardian, Chief Executive Officer Brian George said, "Fifty per cent of the proceeds of the private placement will be used to pay down debt and 50 per cent will go to fund the company's expansion."
The company is in the process of acquiring the Danny Melville family controlled Prime Sports which recently opened the Acropolis Gaming Suites at the Barbican Centre.
Additionally, Mr. George revealed that Supreme Ventures would expand within the region and is in the process of acquiring three additional gaming licences.
Expansion and market consolidation are important as the company operates on fairly slim margins. Out of the $15 billion in projected revenue this year, the company expects to pay 95 per cent in prizes, taxes, marketing and sponsorship.
Speaking to the Guardian, "We operate the Wal-Mart model: high volume and low margin," said Mr. George.
But the company is not just about expansion. To further strengthen their operations, it has added several corporate heavyweights to the board of directors.
On July 10, the company announced that Curtis Martin, deputy group president of the Capital & Credit Financial Group; David McBean, president and chief executive officer of CVM TV and Joseph Issa, chairman of the Cool Group of Companies are to join businesswoman Jannette Stewart, chairman of Stewart Corporation, as additional directors for the company.
And based on the the company's recent moves, Vernon James senior manager of the stock brokerage division of Dehring Bunting & Golding said, "Many of my clients say that they will close their eyes and buy Supreme Ventures every day."
Although he strongly advises clients to wait for details before buying, he does say, "Supreme Ventures is the best marketed company after Digicel and Cable & Wireless (Jamaica). The public sentiment in the company will always be high."
