Please see below Mrs. Marlene Street Forrest, General Manager, JSE presentation at the C2W listing.
Today we are here to mark this special occasion; the listing of C2W Limited as the thirteenth and first start-up company to be listed on the Junior Market. It is almost eight months since the listing of the last Junior Market company. There was a pause but not a full-stop because companies are still preparing to list on the Junior Market but have been anxiously watching the market and anticipating the presentation of the country’s budget. We are pleased that based on the measures and programmes announced by the Minister of Finance, the government continues to support the Junior Market. They understand that all effort must be made to support and grow the small and medium sized companies, which is the engine of growth for economic development and prosperity. We are pleased that the Junior Market has delivered on the objectives that were promised. The SME is the sector that unleashes innovation as shown by C2W in creating this unique company geared at developing song writing talent in the Caribbean and acquiring and marketing the intellectual property rights to these songs. The Junior Market facilitates companies such as C2W to realize their objectives.
I wish to pay tribute to the initial shareholders for the bold move to not only venture into untested territories within the Caribbean but to the new investors who embraced this start-up company. It is expected that through the skills of the team; the executive and non-executive directors, management and staff will be capable of delivering value for their shareholders. We have no doubt that C2W will be closely watched by investors and potential investors alike and its performance will gauge future decisions about investing in start-up companies. That is a huge responsibility for C2W, but one which I am sure that the Company realizes that it has.
Generally, I wish to take this opportunity to remind companies that have a desire to expand that the evidence that equity capital and the listing on the Exchange allow companies the breathing space to grow their business, increase employment and improve efficiencies throughout the organization is demonstrated by the level of success that the twelve previously listed companies have enjoyed to date. I know that Jamaican Teas would not mind my using the information contained in their Annual Report to summarize the feedback we have received from just about all the companies listed to date on the market and I quote:
“Listing has given the Company a new and valuable currency that can be used in a number of ways. We have seen a number of considerable benefits that have accrued to the company… Listing on the Junior Market provided the company with new long term funds… We have been able to obtain financing at better terms than we would have prior to listing… and listing has provided us with a higher profile and better public acceptance…. We find that as a result of the professionalism required of a public company… we have to improve as stewards of the company ourselves.”
The raising of relatively inexpensive capital, the ten year tax holiday aimed at assisting companies during their growth phase and the improvement in corporate governance that usually accompanies listing on the Exchange are just a few real reasons for companies to come to the Junior Market. However, what is also very significant today is that C2W Ltd. will be able to accomplish all of this and is in a unique position to inspire more start-up companies to access capital from the market.
We wish to commend Stocks & Securities for taking this company to market. No doubt Mark will share with you the journey taken to make it happen. We can only congratulate him and his team for a job well done.
C2W has raised $129 million as investors accepted their offer of 300 million shares at a price of $1.29 per share. The offer was oversubscribed by 2.5%. The Company now has 115 new shareholders who will, I am sure provide feedback to the Company at its Annual General Meeting and other events geared at fostering discussions.
Including the $129 million raised by C2W, the total capital raised on the Junior Market since it was launched in April 2009 now amounts to $2.08 billion. With the listing of C2W today the market capitalization on the Junior Market will be $20.85 billion moving from $522m when we listed Access on the market in October 2009.
Ladies and Gentlemen while all that I have said demonstrate the effectiveness of the market and the level of confidence investors are having in the companies that are coming to market, we want to encourage more companies to come. Small and medium sized companies have been given, by the Junior Market, a window of opportunity through which they can propel their companies to the next level and by extension grow the Jamaican economy. In his budget speech the Finance Minister, Hon Peter Phillips encouraged businesses to take advantage of the market.
The JSE is pleased with the listing of C2W Limited today as this company will always have the distinction of being the first start-up company on the Junior Market and currently the only music Company on the Exchange. We are delighted to have you and congratulate your board, management and staff for a successful offer.
We also wish to congratulate the Stock & Securities team and for yet another successful listing on the market, while we encourage other member/dealers to work with SMEs to bring them to market. We would also like to commend the JCSD Registrar Services & Equities Division for the efficient manner in which it executes on these new companies.
C2W Ltd. will be trading under the Symbol MUSIC and will begin trading at a price of $1.29. Again, we congratulate you and welcome you to our family.
Finally, I encourage small & medium sized companies and investors to get on board. We are available to come and talk to you or invite you to the Exchange where our doors are always open.
