The company Cesar Iglesias it has been announced as the first organization in the Dominican Republic to put its shares up for sale to the public. Eric Ramos, general manager of BHD Leon Stock Marketthe entity that was in charge of structuring the program and one of those responsible for placement, answers basic questions about it.
—A public offering of shares, what is it specifically?
A public offering of shares is a process carried out by companies to put their shares up for sale to the public through the stock market.
This issuance is the first of its kind in the country, making it a historic milestone for our financial industry and a great achievement for BHD Leon Stock Marketwhich is the structuring entity and one of those responsible for placement.
—How many shares will be put up for sale and what percentage do they represent of 100 percent of César Iglesias shares?
Up to 38,721,220 common shares will be for sale through a capital increase of the company, which once duly issued, will not exceed 30 percent of the subscribed and paid-in capital of the company.
—How can these shares be purchased, how many per investor, from what date and at what cost?
The Cesar Iglesias actions they will be available for purchase soon through the stock market stalls responsible for placement, such as BHD Leon Stock Market. This placement will begin with the traditional bell. The date is not yet defined. Cesar Iglesias must exhaust the registration of the issue in the Stock Exchange and Stock market of the Dominican Republic, in Cevaldom and other corresponding entities.
There is no minimum or maximum amount to purchase these shares. The definitive price per share will be disclosed in the placement notice when the reception of offers begins.
—For how long is the purchase of the shares worth?
The Cesar Iglesias actions They will be available for purchase from the publication of the placement notice until 15 working days after that publication. It is important that companies and individuals interested in buying these shares present their purchase intention to the stock exchange.
On the other hand, the shares have no expiration. If you buy one of these shares and then want to sell it, you can do so through the stock exchange.
—What benefits will having shares of César Iglesias generate at the level of results of that investment?
When investors, who can be individuals or companies, acquire ordinary or common shares of a company, they become shareholders or partners of that company; that is, in owners of the percentage that these shares represent in the company.
Stocks generate dividends for shareholders, which are known as return on a share and are part of earnings for shareholders. These dividends depend on the results of the company that issued the shares and the number of shares owned by the shareholders.
Another way to generate profits is through capital gains, which are generated by price differences between the time of purchase and sale.
Sometimes price changes are the main component of the return obtained from a stock investment. These returns are variable, such variability being a measure of the risk associated with investing in shares.
“The buyer’s profile will be evaluated by the brokerage position and the first step is to open an investment account”General Manager BHD León Stock Market
—How can the buyer track the value or performance of those shares? Do you have to register on any platform?
The investor will have public information on the listed prices of the shares. He will be able to follow up through the stock market and his financial consultant at the brokerage position that manages his investments.
—What profile should a buyer of these shares have? Can a working class citizen, for example, buy them?
These shares will be available to the general public, both companies and individuals and legal entities. The buyer’s profile will be evaluated by the brokerage firm and the first step is to open an investment account. Also, know the risks associated with the purchase of shares.
—Once the shares are purchased, does the buyer become an official shareholder of César Iglesias?
So is. when buying Cesar Iglesias actions the investor becomes a shareholder of this company.
“There is price volatility in shares and this should be considered by investors before making an investment in shares.”General Manager BHD León Stock Market
—Investing in shares, in this case of César Iglesias, generates a better return than a fixed-term certificate or an investment fund?
Equity investments, such as shares, could generate higher returns than other investment instruments.
It is important for investors to be aware of the risks associated with buying shares. One of the main risks is the volatility in the price of the shares once they are admitted to trading; that is, in the future a share could be worth more or less than the price at which it was initially purchased.
“Hollywood has sold us an overwhelming and stressful idea of investing in stocks. Will these actions be tied to the ups and downs of the market due to external situations?
There is price volatility in shares and this should be considered by investors before making an investment in shares.
We can also ensure that Cesar Iglesias is a company with more than 100 years of history and more than 3,000 employees, which handles more than 60 mass consumption brands. It is the first organization in the country to put its shares up for public sale and this was achieved thanks to its stability, financial consistency and excellent risk ratings.
—It has been announced that César Iglesias is the first company to issue a public offering of shares in the Dominican Republic. How is this offer different from others like the ones Rich announced some time ago?
The example you mention is a public offering trust. In the case of Cesar Iglesias It is a direct offering of the company’s common stock. The shares do not expire, the trust does. Shareholders have the right to vote on company decisions without the need to be represented by an intermediate figure, as is the case with trusts. These are some differences in terms of political and economic rights.
Will the investment be in pesos or dollars?
The sale of Cesar Iglesias actions will be offered in Dominican pesos.
