Higher capital limit for Junior Market firms on the Jamaica Stock Exchange now in place

 


Legislation has been passed which raises the participating share capital limit for Junior Market companies on the Jamaica Stock Exchange (JSE) from $500 million to $750 million. New applicants can now apply under the amended rule.

The Junior Market, established in April 2009, facilitates investments in legitimate small and medium-sized companies, whose shares trade on a special JSE platform. Both Jamaican and companies from nations with Caricom membership can participate, raising capital for expansion and growth.

Currently, the Junior Market has 48 listed companies with market capitalisation of $148.5 billion at year end December 2024.
The amendment which raised the cap was earlier passed in the lower house and went to the Senate on Friday January 24, 2025.


As outlined by the JSE, small to medium sized companies incorporated or registered and operating in Jamaica or Caribbean Community and Common Market (CARICOM) may apply to list securities on the JSE Junior Market.

Such companies should not have been listed or be an associate of a company listed on the Main Market of the Exchange or on a main trading platform of any other stock exchange.

Companies that list on the Junior Market benefit from full exemption of the payment of income tax for the first five years after listing, and a 50 per cent exemption in the subsequent five (5) year period. The requirements for listing on the Junior Market are:

Requirements

The minimum requirements for a company’s securities to be considered for listing, among others, are:
Fully paid share capital of not less than JMD50 million and not more than JMD500 million
Minimum public free float of 20 per cent to at least 100 shareholders
Articles of Association or Incorporation, or other corresponding document must conform to the Exchange’s requirements.
Satisfaction of the JSE’s Mentor requirements

Application Documents
Prospectus or other offer document
Completed Application for Listing and Listing Agreement
Articles of Incorporation or other corresponding document
A certified copy of the resolution of the Directors or Shareholders, authorizing application for listing
Other documents that the Exchange may require.

Ongoing Requirements
Submit Quarterly Financial Statements at intervals not exceeding three (3) months and within forty-five days of end of the period to which the statements relate.
Submit Audited Financial Statements within ninety (90) days of the company’s financial year-end, or in keeping with fourth quarter option.
Submit Annual Report within one hundred and twenty (120) days of the company’s financial year-end.
Provide notification of any corporate actions, profits, issues, expansion programmes and any other material changes, including any other information necessary to enable share or stockholders to appraise the position of the company and to avoid the establishment of a false market in the company’s securities.

Information source: Office of the Prime Minister and Jamaica Stock Exchange.

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