Jamaica Money Market Brokers (JMMB) Limited
To be held at the Jamaica Stock Exchange
On Friday, September 27, 2013 at 9:00 a.m.
Moderator: Mr. Robin Levy –GM –JCSD & DGM JSE
Mrs. Imani Duncan Price – Group Chief Strategy Officer
Mr. Paul Gray – Group Investment Officer & Treasurer
Ms. Kerry-Ann Stimpson – Group Marketing Manager
Mr. Sheldon Powe – Chief Information Officer
Ms. Kisha Anderson – Head of Investment Services
Ms. Fornia Young – Head of Retail Client Sales & Services
Ms. Carolyn DaCosta – Group Company Secretary
Mr. Wentworth Graham – Chief Regulatory Officer – RMOD
Members of the Media
Distinguished Ladies & Gentlemen
Good Morning and Welcome. Let me extend an extra special welcome to those who are visiting the Exchange for the first time.
Today, September 27, we are here to mark this special occasion; the listing of JMMB’s 7.25 & 7.5% Preference Shares. It is also the first time that the JSE is listing preference shares since the start of the year. JMMB is no stranger to the market and with the listing of these two securities, they will have more securities listed (ordinary & preference shares) than any other company on the Exchange. You may be aware that JMMB Ordinary shares and its 8.75% and 8% Preference shares are currently listed. It is obvious that JMMB knows the power and potential of the market and the importance of raising funds through this mechanism, having raised close to $4.6 billion since listing its first class of preference shares in 2008 and raising at that time $32 million by the issuance of its 12.15% Preference Shares, this is however before the raising of capital through the 7.25% and 7.5% preference shares. With the listing today of these Preference Shares, JMMB would have raised over $7 billion through the issuance of preference shares. (Including the ordinary shares)
The fact that JMMB successfully raise funds on the market speaks to attractiveness of the offers and the confidence that investors place in the Company. This also underscores the message of the Exchange that confidence in a market, in a company, in the economy and indeed in the economic policies and programmes, is necessary if we are to achieve on a wider scale similar successes that JMMB enjoys. While we are here to speak of the listing of these preference shares, it would be remiss of me not to mention that the underpinning and catalyst is JMMB the Company which listed its ordinary shares in 2003 and has been considered since 2005 as a blue chip company, which is demonstrated by its inclusion in the JSE Select Index.
I wish to congratulate JMMB for its success in raising approximately $1.47 billion with all applicants who subscribed to the offer receiving all their shares for which they applied. Including all the other securities issued, the company now has 12,865 shareholders. That’s quite a number of persons to which to report!
JMMB has seen the benefits of not only listing its ordinary shares but appreciate how to utilize the market to grow their business by the issuance of other classes of shares to the market. The fact that the company was already listed and was regulatory compliant, provided the right environment for further and future contact with their shareholders. We wish to encourage other companies that are currently listed and may have a need for more capital to consider the route of preference shares as one option or indeed the route of rights issue as another option. We wish also to remind you that the Jamaica Stock Exchange announced earlier this year a reduction in the JSE trading/transfer fees for trading preference shares. Investors will benefit from this move.
The equities market play such an important role in the growth and development of the economy and while we consider these two listings as the medium through which JMMB raised capital to grow their business, this must be viewed in the wider context of the impact this has on the wider economy and investors who are given a choice of products provided to them through a stock market. We therefore take this opportunity to remind those persons who frame or who assist in framing legislations that the exchange that the Exchange is a key component on capital market growth and that there are benefits to be had from the widest consultation with us and other stakeholders on issues such tax reform or incentives to promote compliance and economic. We all have an interest in making Jamaica succeed by creating more opportunities for all concerned. I wish to take this opportunity to commend the government on its wisdom in treating with the matter of the review of Omnibus Tax Incentive proposal, understanding that both taxation and growth must be considered in arriving at the best policy for Jamaica and ordinary Jamaicans.
JMMB invited the public to participate in the two preference shares with offers which opened on August 21, 2013 and closed August 30, 2013. Today we list 715,482 million units of 7.5% Preference Shares at a price per share of $2.00 and 15.35 million units of 7.25% preference shares at $2.25 with the securities trading under the symbols JMMB 7.50 & JMMB 7.25 respectively. We have seen very active secondary market trading activities in the previously and currently listed preference shares and this may be a sign of what to expect for these two new listings. We congratulate the team at JMMB for your foresight in utilizing the range of options available and wish your Company all the best. We note that you have taken on board our invitation which applies to all, that our doors are always open.
Finally, I wish to encourage small & medium sized and large companies and investors to make a difference to Jamaica. Let us utilize the platforms and facilities that are available, such as the equities market to chart a way towards growth and prosperity. The team at the Jamaica Stock Exchange and the Jamaica Central Securities Depository is available to come and talk with you or invite you to the Exchange, either way please consider us your partner for positive change.
Marlene Street Forrest
September 27, 2013