Derrimon Trading Company Limited the 20th Company to Listed on the JSE’s Junior Market
Good Morning and Welcome!
We are in the Christmas season and we have much to celebrate and for which to be thankful. We are giving thanks today as this is a special day for the Exchange, JCSD, Derrimon Traders, Mayberry and all the other persons who played a role in the successful execution of this Initial Public Offer. Indeed, Derrimon has thrust the Junior Market from its status as a teenager into other realms. When Derrimon lists today, this will be the Exchange’s twentieth listing of ordinary shares on the Junior Market. I make that distinction in respect to Ordinary shares because just last week, Eppley, a Junior Market Company listed its preference shares.
I wish to congratulate Derrimon Trading Ltd. for its success in raising $150.34m and adding 254 new shareholders to the Company. The Company has been successful in raising the fourth largest amount raised on the Junior Market to date. Investors responded positively and quickly with the offer opening and closing on the same day. The offer was oversubscribed. I am pleased to inform that the initial public offers of all the companies currently listed on the market have all been oversubscribed. This is a signal that investors are seeking to diversify their portfolio and invest in companies that they believe increase their chances of wealth creation.
We believe that efficiency and effectiveness in distribution of commodities is essential to the development of this country and we are therefore pleased that Derrimon has indicated that a portion of the proceeds from the Company’s initial public offering will be used to enhance its wholesale and retail business software platform. Combined with the Company’s intention of retiring debt, I believe this should result in a positive for investors, the company and the consumers. If this happens, the objectives of the Junior Market would be realized. Growth and improvements in companies are almost always accompanied by growth in the economy.
Including the $150.34 million raised by Derrimon, the total capital raised on the market since it was launched in April 2009 now stands at $3.06 billion. We have crossed the $3b mark and this is a testimony to the faith and confidence that our local investors are having in our local small and medium sized companies. With the listing of the Company today, the market capitalization on the Junior Market will increase to $26.74 billion moving from $522m when we listed Access on the market in October 2009.
Derrimon Trading Company Limited will be trading under the Symbol DTL and will begin trading at a price of $2.05 per share. We congratulate you and welcome you to the JSE Group. We aim to serve you in ensuring that there is a fair and efficient market on which your securities can be traded, custodied and settled. We will ensure that the information that you will provide to us will be communicated to your shareholders in a timely manner. Now that the IPO is over, the work continues for the Company to ensure that proper disclosure, good corporate governance and your mission of quality continue to build the brand. This and a commitment to your stakeholders will ensure that Derrimon achieves its objectives and be a force to be reckoned with.
I must applaud Mayberry and all the other member dealers who have seen the importance of the junior market and have worked with these companies to raise funds and list on the Exchange. We are aware that significant effort goes into every listing that takes place on the exchange and I commend you for your effort and dedication to the companies and to the market. You appreciate the importance of building Jamaica one company at a time.
As we draw close to the end of the year, I wish to thank all the team work that has gone into us having a successful year to date. By our combined efforts in encouraging companies to raise funds on the market we have had a record year of listing securities. At the beginning of trading today, 12 securities would have been listed since the start of the year. This spreads across all markets and classes of securities. Five securities have been listed on the main market, two in the category of ordinary shares and three preference shares; two in the bond market and five junior market securities. This shows an increased interest in the markets in general. We are hopeful that given the numerous expressions of interest this will continue into the New Year.
Finally I ask the many companies that have benefited from raising capital and listing on the Exchange, please encourage other companies to do likewise. 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 where our doors are always open. Enjoy the Holidays.
Marlene Street Forrest
December 17, 2013