NCB Capital Markets to waive arrange fees for small companies listing on Junior Market
NCB Capital Markets is making a greater effort to get behind Small and Medium enterprises (SMES) and together with its Group commercial banking arm will be placing greater emphasis on capacity building for SMES that have junior maket listing potential.
To kick-start this effort NCB Capital Markets will waive its arranger fees for all junior market mandates signed with it between now and September 30, 2018.
This means that junior market IPOS arranged by NCB Capital Markets will be done free of broker fees.
“This demonstrates the NCB Financial Group’s commitment to our SMES as well as the further development of the equities market and its potential impact on nation building,” said the CEO of NCB Capital Markets, Steven Gooden.
Over the last two financial years, NCB has been involved in over US$1.7 billion of capital markets and structured products transactions across the region.
“Last year we would have been involved in close to half of the entire Jamaican dollar denominated private placements, in terms of value, executed under the FSC’S Exempt Distribution regime. We would have also executed a similar percentage in value of equities traded on the Jamaica Stock Exchange (JSE), said Gooden.
Speaking at the 14th Regional Conference on Investments & the Capital Markets at the Pegasus on Tuesday night, Gooden said the starting point for any business enterprise is capital or risk capital.
He noted that for a developing country, access to bank financing is relatively good but to access it you need risk capital, a type of funding that falls outside the mandate of a commercial bank.
“Capital in the form of equity or some form of subordinated debt is a key ingredient for credit expansion . As such the capital markets provide that bridge for those that are in need and those that have the risk capital to invest. These suppliers of capital may be in the form of institutional investors or the average person through direct investments or indirectly through pension schemes,” Gooden added.