It is the first time in the history of the market that a sitting Prime Minister and the Minister of Finance and the Public Service attend the listing of a company. This not only signals the support of the Government for small and medium-sized enterprises (SMEs) but a declaration to the market that the Government is interested in the growth and development of the capital market and recognizes the Jamaica Stock Exchange (JSE) as a central pillar to the growth and development of the country.
The Prime Minister, the Most Honourable Andrew Holness, speaking at the ceremony told the audience that the Government’s reestablishment of the Junior Market Incentive is an investment in SMEs; rather than giving up of taxes, with the incentives companies can expand and more persons can be employed to help reduce crime and violence. He stated that from this investment the Government can reap more taxes over time from the growth of listed companies. He told the audience that the Stock Market was a very important platform for the Government to obtain its 5% growth in 4 years. The Prime Minister took the opportunity to encourage SME’s to make use of the Junior Market, to raise capital and expand their businesses.
The Honourable Audley Shaw, in his comments, re-affirms the Government’s commitment to the Junior Market with the reestablishment of the tax incentive. He went on to state that the Government reinstated the full incentive to the Junior Market which was in place in 2009, that is 100% relief from corporate income tax in the first five years of being listed on the Junior Market and 50% for the next five years of being listed on the market.
Speaking at the listing ceremony, General Manager of the JSE, Mrs. Street Forrest, told the audience that “It is perhaps appropriate to note at this point that the tax benefits of the JSE’s Junior Market were fully restored to 10 years corporate income tax concessions and written into the tax code, in accordance with the campaign promises made by Prime Minister Andrew Holness, Minister Audley Shaw and the team while still in opposition. We wish to thank you on behalf of our Board, employees and Jamaicans from all walks of life, at home and in the Diaspora. The commendations keep coming in. The wisdom of this decision is evident in the positive nature of the Junior Market and the significant success companies on this Market have made in growing sales (increasing GCT), creating new jobs (increasing payroll taxes) and creating significant wealth for the tens of thousands of new investors, including companies’ employees, who had not previously owned stocks”.
In his presentation, CEO of Main Event Entertainment, Mr. Solomon Sharp told the audience that, “Main Event Entertainment was an innovative, progressive and dynamic company which will provide jobs for persons in the country and help to drive growth and development of not only his company but the economy as whole. He further stated that the company was committed to the 5 in 4 growth as stated by the Prime Minister and will work hard to create value for its shareholders. He reassured shareholders that the company was in good hands and that they had made a very good investment.
Mr. Gary Peart, CEO Mayberry Investments Limited, lauded the Government for its foresight in restoring the Junior Market incentives and that Mayberry was committed to list more companies on the Junior Market. He went on to state, that although Mayberry was responsible for the listing of 17 of the 30 Junior Market companies, they would be doing much more in the future. He thanked the Companies Office of Jamaica, the Financial Services Commission and the Jamaica Stock Exchange on working together in such a unified manner to allow companies such as Main Event Entertainment to come to market on timely bases.
Main Event listed 300,005,000 shares at $2.00. This offer was oversubscribed by 460% and closed in less than a minute of opening.
