Hydro Belize IPO Oversubscribed by Belizeans

Belizeans didn’t hesitate this month, they rushed to buy into Hydro Belize, the newly nationalized hydropower company that fuels almost a third of the country’s electricity. And the response was overwhelming. The public offer didn’t just sell out… it was oversubscribed. Belizeans wanted four and a half million shares, half a million more than what was even available. At twenty nine dollars a share, the price certainly helped. But was it just the affordability that sparked this national investment frenzy? Or is there something bigger driving Belizeans to take this financial leap? News Five’s Britney Gordon takes a closer look.

 

Britney Gordon, Reporting

It’s been a huge month for Hydro Belize, the hydropower company that keeps roughly a third of the country’s lights on. And when government opened the door for Belizeans to buy shares, the response was immediate. More than two thousand people jumped at the chance, pushing demand past four million dollars’ worth of shares, half a million more than what was even on offer. Among those eager new investors is twenty‑five‑year‑old Monilee Aspinall, one of the thousands hoping to own a piece of the country’s energy future.

 

Monilee Aspinall, Young Investor

“Seeing it circulating online, I had some people ask me if I was planning to invest ’cause they’re investors as well. And I thought, I’ve never quite invested in something like this, so let me really read what they’ve put out. And I will admit that they did do a pretty good job of presenting the information to us. It just took a little bit of time to get through.”

 

It’s Aspinall’s first step into investing, so she decided to start small, just ten shares. She knows it’s not money she’ll see again right away, but she’s prepared to wait it out. Hydro Belize President, Kay Menzies explains how the process works.

 

On the Phone: Kay Menzies, President, Hydro Belize Limited

“Think of this in a small way. Like you’ve bought a piece of the company. This isn’t a loan, you’ve given us twenty-nine dollars and we will give you back twenty-nine. This is like when if you make a loan and you charge interest you would get the interest over time and eventually if you wanted to sell that piece of the company that you own, then you can get your twenty-nine dollars back by selling  that share.”

 

Menzies added that the company will undergo an independent audit at the end of every year. The company will also publish its financial statements and annual report each year, along with a breakdown of its profits. Following this exercise, a portion of the profits will be then distributed to the shareholders.

 

Monilee Aspinall

“The payback for that in a year would be something around like thirty something dollars. But if it stays at that level now, if people start investing and it improves, then the share cost, improves, and dividends change, all that fun stuff. So I’m looking forward to have something that I can be very attentive to, as they talk about it, as it develops. Maybe if it gets bigger and we start personally depending more on the hydroelectric dam for our electricity here.”

 

Aspinall reveals that like many of her peers, she wasn’t very familiar with the process of investing but commends Hydro Belize for laying out the details in an easy-to-understand format.

 

Monilee Aspinall

“I know that there were concerns about, since it was so cheap, persons who had the money to shell out would go and they would buy really big pieces of the shares. And I know that even at this point that they’ve maxed out on the share applications and the amount of money that they expected is like way over. So I do worry that the small people like me might get boxed out. But I do hope that they take into consideration that the little people like me that are interested in contributing to their country.”

 

Menzies says the overwhelming response has been met with gratitude, and a dedicated team is now focused on delivering real returns on Belizeans’ investment. She also underscored Hydro Belize’s commitment to keeping the grid powered with clean, green energy.

 

On the Phone: Kay Menzies

“We are looking at ways that we can increase the hydroelectric capacity as well as looking for other opportunities to provide power. Our one restriction is that we prefer that power always be renewable and green and keeping with Belize’s commitment to the environment. So very unlikely you’ll see us investing in diesels or anything like that, but more solar and continued investment in hydro and other technologies that keep the environment clean.”

 

More than two thousand investor applications are still being reviewed, and applicants will be notified of their status once that process is complete. Britney Gordon for News Five.