Sep 2014 Financial News

JSE eyeing six new listings

Sep 24, 2014

THE Jamaica Stock Exchange (JSE) is hoping to list six companies by the end of 2014.

The JSE reckons that the introduction of a transitional period for the phasing out of the special income tax incentive scheme currently being enjoyed by companies on the junior stock market will encourage new companies to come to the market earlier.

"There is a possibility that we will achieve that target, but it is not a strong possibility as when we made our projections in 2013," JSE General Manager Marlene Street Forrest told the Business Observer.

Already, two companies — Sweet River Abattoir and Knutsford Express — have listed on the junior stock market, while Margaritaville and Margaritaville (Turks) Limited listed on the main market and US$ Denominated Securities Market respectively.

Another two companies should be coming to market shortly, according to Street Forrest.

"There is still some amount of wait-and-see activities going on in the market; however, we are sure as we speak that there are two other companies coming and we know of a few more that are making preparations to come," she said.

Last October, Finance and Planning Minister Dr Peter Phillips announced that companies listing on the stock exchange between January 2014 and December 2016 would benefit from five years of free corporate income tax, instead of a 10-year exemption on corporate profits.

The tax-free incentive will follow another five years of 50 per cent taxation, providing that the current special tax holidays be eliminated.

Companies listed on the Exchange prior to January 2014 will continue to enjoy their current benefits for the remainder of their unexpired incentive period.

"We foresee companies taking advantage of the opportunity before the incentive is phased out," Chairman Donovan Perkins stated in the JSE annual report.

Last year, the JSE saw five new companies being listed on the junior market and one company listing its preference shares. This brings a total of 22 entities currently listed on the junior stock market.

Another six securities were listed on the main market while two listed on the JSE's newest product — the bond market.

The JSE managed to raise $4.2 billion on all markets from the new listings and now hopes to double its bond market listings by the end of the year.

"We are actively pursuing current listed companies and others to list their bonds," Street Forrest said.

Companies listed on the junior market can raise a minimum of $50 million in equities, while companies wanting to raise more than $500 million would list on the main market.

Source:
BY KARENA BENNETT Business reporter
bennettk@jamaicaobserver.com
Jamaica Observer
Wednesday September 24, 2014

http://www.jamaicaobserver.com/business/JSE-eyeing-six-new-listings_17593469