Double listing on the JSE
Having raised their respective targets from their IPOs in December and met other requirements of the Jamaica Stock Exchange (JSE), the air conditioning and energy solutions company CAC alongside managed IT services tTech were listed on the Junior market of the JSE on Thursday January 7.
It is the first simultaneous listing for the JSE. Both companies closed their IPOs in the week before Christmas. The listing brings to 25 the number of companies on the Junior Market.
tTech raised $50.2 million in one minute after opening its offer, while CAC raised a little over $133 million in two days, also overshooting its target and closing early.
They will begin trading under the symbols CAC and tTech following the listing of their common shares.
Placement on the Junior Market of the JSE will allow the companies to enjoy corporate tax waivers for the next five years.
Marlene Street-Forrest, general manager of the JSE, in her remarks at the listing function, said the two companies are also the first beneficiaries of the listing assistance grants and will also be afforded training for any aspect of their business in which capacity building is requested under a new JSE programme.
She noted that CAC and tTech Ltd will be adding 133 and 289 shareholders, respectively, to their companies.
“This is significant,” Street-Forrest said, “as one of the desired outcomes of the Junior Market is that there would be an expansion of ordinary Jamaicans taking real advantage of the equities market.”
The companies are expected to experience accelerated growth through application of the proceeds of the IPO and tax benefits.
The general manager said 15 of the 23 companies listed on the Junior Market experienced an increase in their net profit in comparison to the previous year. Of the 15 companies, 10 have registered increases in the double-digit range, with four of the 10 companies experiencing increases of more than 50 per cent in net profit, Street-Forrest disclosed.
She said that in 2015 the index of the Junior Market showed an increase of 160 per cent over the previous year, and combined with the main market’s performance of just under 100 per cent, resulted in the JSE being acknowledged by
Bloomberg as the best-performing stock exchange in the world for 2015.
“If one had any doubt, the Junior Market performance can also be measured by its market capitalisation which, as at January 6, was $70 billion and which saw an increase of $41.9 billion in 2015 over the prior year.”
Street-Forrest commented at the listing: “Raising equity capital on the main and Junior Markets enable these companies to level the playing field with our regional neighbours and, in fact, globally in respect to the cost of capital. The country has seen and will continue to see a positive impact the more companies raise funds on the markets, by virtue of positive impact on GDP and the increase in creation of employment opportunities.”