Frequently Asked Questions
What was the TTNGL IPO about?
The National Gas Company of Trinidad and Tobago Limited (NGC) acquired an indirect 39% of the equity of Phoenix Park Gas Processors Limited (PPGPL) in August of 2013 through the acquisition of Trinidad and Tobago Holdings LLC (‘TT Holdings’) from ConocoPhillips.
On February 27, 2014, prior to the IPO, NGC transferred its 100% shareholding in TT Holdings to a newly formed entity known as Trinidad and Tobago NGL Limited (“TTNGL”) in exchange for 38,700,000 Class A Shares and 116,100,000 Class B Shares in TTNGL. TT Holdings was subsequently dissolved, and 39% shareholding in PPGPL was vested in TTNGL, to provide the Trinidad and Tobago public with an opportunity to invest in an indirect interest in PPGPL.
The TTNGL IPO commenced on Monday August 10, 2015 and was officially launched on the Trinidad and Tobago Stock Exchange (TTSE) on Monday October 19, 2015.
Who is Trinidad and Tobago NGL Limited?
NGL is the Issuer of the shares to be sold in the IPO and the effective, legal owner of a 39% shareholding in PPGPL. The principal business objective of NGL was to create a structure by way of which the public would be able to take part in the ownership of an equity interest in Phoenix Park Gas Processors Limited (PPGPL).
Is NGC going public?
No. NGC was the Selling Shareholder of the IPO Issuer NGL's shares. NGC was also the Promoter of the IPO.
What does it mean that NGC was the IPO Promoter?
As IPO promoter, NGC took the initiative in founding and organising the Issuer, NGL. NGC is the selling shareholder of NGL's shares.
What is a dividend?
A dividend is a payment made by a company to its shareholders. This payment is usually made from the company profits.
What is NGL’s dividend policy?
The Company’s dividend policy will be to distribute cash in excess of operating requirements to its shareholders, which, in each case, shall be at the discretion of its Board of Directors. In accordance with such dividend policy, the Company’s total annual dividend payout percentage shall be equal to a maximum of 99% of Profit Available for Distribution.
Who determines whether a dividend payment is to be made and how much?
The Board of Directors.
Who pays the dividend?
The company issuing the dividend is typically responsible for paying dividends to its shareholders. However, public companies usually appoint a registrar due to their large number of shareholders.
TTNGL proposes to appoint the Trinidad and Tobago Central Depository Limited (TTCD) as its registrar (subject to the requisite approvals and the entering into of a contractual agreement with the TTCD). It is anticipated that payments of dividends to shareholders will be done via the Automated Clearing House system of the Banks and payments will be made directly to the bank account provided by each shareholder.
Why do I have to open a brokerage/TTCD (Trinidad and Tobago Central Depository) account?
In order to invest in shares which are listed on the Trinidad and Tobago Stock Exchange, you must have a brokerage account in which your shares will be deposited and held for your benefit.
I have a brokerage account already. Do I still need to open an account?
No, you do not. If you have an account already established with a broker you can continue business with that broker.
How much do I have to pay to open this account?
No payments are necessary for establishing this account.
Is there a minimum deposit needed for this account?
Unlike a regular bank account, this account can be opened without any deposit.
What if I opened this account and do not purchase any shares?
There is no commitment to any follow up action after you open your TTCD account. The account will simply be established and ready for use whenever you are ready.
Can this account be held jointly?
Your TTCD account can be held jointly. The joint holder will be required to provide the same information as the primary holder. (See the account opening checklist.) Please note all transactions on a joint account will require the authorisation of all joint holders on this account.
Can I open my account and add a joint holder later?
Your account will have to be closed and a new account established with the joint holder. A cost will be incurred for transferring shares from the closed account to the new account.
Can I add a beneficiary to this account?
Beneficiaries cannot be added to a TTCD account.
Can my child be a joint holder on a TTCD account?
Yes, as long as the child has reached the age of majority (18 years).
Should the holder of a TTCD account become deceased, what happens to the shares in the account?
If the account is joint, the registered joint holder(s) assume(s) the shareholding. If the account is not joint the shares will become part of the Deceased’s estate and subject to the instructions of a Will. In the absence of a Will, the shares will be considered assets for consideration in the probate of the Deceased.
I have share certificates. What should I do with these?
Lodge your certificates with a broker. The lodgment process involves opening a brokerage/TTCD account and submitting the certificates to the broker. The broker then sends the certificates to the TTCD where they are lodged. The shares are then deposited into your TTCD account.
What information can I expect to receive about the company's performance and financial position once I make my first investment?
As a public company, the Issuer NGL will be required to comply with the reporting obligations contained in the applicable Securities Legislation, including (but not limited to) the distribution to investors of quarterly and annual financial statements and the provisioned press releases of notice to the public of any significant changes in NGL’s affairs which would be considered important to a reasonable investor, business events at NGL, as well as at PPGPL.
Glossary of Terms
IPO – is a type of public offering where shares of the stock in a company are sold to the general public, on a securities exchange, for the first time. Through this process, a private company transforms into a public company.
Equity investment – generally refers to the buying and holding of shares of stock on a stock market by individuals and firms in anticipation of income from dividends and capital gains, as the value of the stock rises.
Savings – refers to money set aside for the purpose of future use. Savings generally represent only one part of an individual’s assets and, unlike investments, they usually have a minimal exposure to risk.
Investments – an investment is a monetary asset purchased with the idea that the asset will provide income in the future or appreciate and be sold at a higher price. There is usually a risk of some loss.