Mr. and Mrs. John Mahfood of Jamaican Teas Limited, examined the Junior Market Rule Book, presented to Jamaican Teas Limited at their listing on July 12, 2010. Looking on are Mr. Gary Peart, CEO of Mayberry and Mrs. Marlene Street Forrest, General Manager of the Jamaica Stock Exchange.
Mrs. Mahfood, wife of Mr. John Mahfood inserted the strip to herald in the listing of Jamaican Teas Limited as the third company to be listed on the Junior Market. Jamaican Teas raised over $92 millions on the market through the issue, subscription and sale of 27,302,695 shares at a price of $3.37. The offer was over-subscribed and closed shortly after opening.
Mrs. Street Forrest, General Manager of the JSE, in welcoming all to the Exchange told the audience that “It is no secret that we are always pleased to have companies list on the Exchange, as we believe that in listing they have made the right decision in choosing to use equity capital in the furtherance of the growth of their business”. She further stated that “despite the obvious benefits that a company listed on the Junior Market can enjoy, such as raising of relatively inexpensive capital, the 10 year corporate tax incentive, no taxation on dividend, the ease of transferability of shares, it is still a big move to prepare for listing. It is a different ball game, ensuring that those Financial Statements can pass the scrutiny of eyes that hitherto were not permitted to see them, hearing discussion on your company and fearing it could be negative; these are just some of the fears of existing shareholders. I must therefore commend Jamaican Teas’ entire team for their willingness, resolve and foresight to come to market”.
Mr. Mahfood, CEO of Jamaican Teas told the audience that with the high interest rate regime (although interest rates are falling) in Jamaica, and the wide spread between the cost of loan and the amount paid on deposits; bank loans are the second most mitigating factor outside of crime that retards the growth of businesses in Jamaica. Mr. Mahfood took the occasion to appeal to small and medium sized business owners to list on the Junior Market. Mr. Mahfood stated that there are tremendous benefits to listing on the Junior Market. However, he recognizes that there are fears from business owners as they think that they will be giving up control of their business, but this is not so as the minimum share capital that needs to be released to the public is 20%. He implored other small and medium sized companies to overcome their fear and get on board.
Mr. Peart, CEO of Mayberry congratulated the regulators on their quick actions when it comes to regulatory matters and the efficient manner in processing documents in respect to Initial Public Offerings.
