TORONTO (Reuters) - Canadian Imperial Bank of Commerce (CM.TO) said on Friday it had scrapped plans to list its FirstCaribbean International Bank Ltd business in New York due to market conditions.
Canada’s fifth-biggest lender by market value and assets had planned to raise $240 million through an initial public offering of 9.6 million shares. The IPO would have been priced between $22 and $25 per share, giving the business a market value of $1.3 billion at the top of the range.
CIBC spokesman Tom Wallis said the bank 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’s biggest market is Barbados, where it is based. It also has operations in the Bahamas and Cayman Islands. The bank is currently listed on the Barbados Stock Exchange and the Trinidad and Tobago Stock Exchange.
Tough economic conditions in Barbados are hampering FirstCaribbean’s potential for growth while executives are mindful of perceived regulatory risks associated with the region.
Reuters reported last December that CIBC was considering listing shares in FirstCaribbean in New York, with a view to potentially exiting the region.
Reporting by Matt Scuffham; Editing by Susan Thomas