Five months after its launch date in April, the Junior Stock Exchange, designed to raise capital for companies with a $50 million to $500 million capital base, is yet to have a single listing, but Jamaica Stock Exchange (JSE) officials now say it is to have its first listing next month.

"Member dealers have been working with several companies and we expect to have the first listing in the early part of October," Marlene Street-Forrest, the JSE's general manager, said yesterday.

"We are now reviewing the prospectus and should send some feedback to the company in short order," she added.

But Street-Forrest declined to name the company that will be the first to be listed on the junior exchange, being created to give small and medium-size companies another means of raising capital.

Telecommunications and media services company, Anbell Group had indicated some time ago that it intended to take advantage of the junior exchange to fund its foray into renewable energy generation.

Formal announcement

But details of the planned public offer of the group's spin-off business, Intelligent Multimedia Limited, are yet to be disclosed.

"A few key areas must be first completed before I can make any formal announcement," Andrew Pairman, Anbell's chief executive officer, told Wednesday Business.

Media reports last week said Access Financial Services, a small business and personal loans outfit, is also preparing for listing on the junior exchange. Company officials were not immediately available for comment.

At the launch of the JSE spin-off in April, about 10 small and medium-size business were said to be prospects for listing.

Meanwhile, it is now official that junior listed companies will enjoy a 10-year tax holiday from the date of listing.

"The Government has now concretised the benefits agreed to be provided to the junior market by signing into law the remission notice which was gazetted on August 14," Street-Forrest explained.

"So we not only have the framework but all approvals for the junior market."

The JSE is itself extending an incentive with listing fees to be up to 50 per cent lower than that charged for the main exchange.

In July, the JSE also formalised a partnership with Jamaica Trade and Invest Corporate Finance Broker Unit (CFBU) designed to assist the exchange identify and position companies to raise capital via initial public offerings.

Potential clients

At the time the CFBU indicated that it had identified at least 30 clients as potentials for listing. They spanned the information technology, manufacturing, tourism, agro-processing, advertising and family-entertainment sectors.

"We had hoped to have one ready by September but on reviewing the documents we realised that more work needed to be done," CFBU manager, Deana McFarlane, said this week.

sabrina. gordon@gleanerjm.com