Jamaica Stock Exchange begins new Junior Market drive

The Jamaica Stock Exchange (JSE) has begun a new drive to encourage companies that are searching for capital to grow their businesses, to list on the Junior Market of the Exchange.

By listing the stock market, companies can raise long-term equity finance through issuing shares to private and institutional investors.

The Junior Market regime sees the firms benefiting from a 10-year tax break. For the first five years, entities are exempt from paying corporate income tax, and afterwards are required to pay 50 per cent of their statutory obligations for the remaining period.

Mailpac Group Executive Chairman Khari Robinson leads the listing of his company on the Junior Market of the Jamaica Stock Exchange. (File photo)

Since the start of the Junior Market in April 2009, there have been 41 companies and 43 securities listed on the Junior Market.

Principals, for the most part, have channelled capital inflows into expanding the entities’ operations, with a number of those involved in manufacturing either venturing into or expanding their export portfolios.

With the prospect of economic recovery now on the horizon, given the ongoin and aggressive vaccination campaigns against the COVID-19 virus, the JSE is moving to encourage unlisted companies to consider tapping the equities market as a source of funds for growth.

On Wednesday April 21, 2021, the JSE, in association with the Jamaica Manufacturers and Exporters Association (JMEA) and JMMB Group Limited (JMMBGL), will be hosting a virtual Junior Market Workshop with the topic “How to List Your Company on the Market.”

Admission for the forum is free. The JSE indicated that the objective is to assist prospective small and medium-sized businesses  to list on the Junior Market. 

A team of expert advisors who have helped dozens of companies, local and international, to list on JSE’s Markets will explain the requirements to list on the Exchange. 

Eligible participants in the virtual forum are individuals who manage a business or  aspire to launch their own business.

Taking the lead at the Junior Market Workshop will be JSE head  Marlene Street Forrest, JSE’s Managing Director,  on the topic, “The Requirements for Listing“.

Jamaica Stock Exchange Managing Director Marlene Street Forrest speaking during a listing ceremony on Friday, July 31, 2020. (Photo: Karl McLarty/Jamaica Observer)

Topics include Getting Your Accounts Ready for Listing; 

What Makes the Audit Process Flow Smoothly;  The Role of Your Broker in Listing; and How to Choose your Legal Team.It will also feature presentations from companies already listed on the Junior Market.