Sat | Dec 16, 2017

Growth & Jobs | How to get your company listed

Published:Tuesday | August 22, 2017 | 12:00 AM

Getting your company listed on the Jamaica Stock Exchange takes a lot of work. Listing can take anywhere between three and a half months to two years, and sometimes even longer, depending on how prepared a company is. Below are some of the steps that will be needed to get listed.

- Have properly audited financial statements. This is important because this is the first place that the broker will look to for information because it tells the story of the company. This information is critical for investors.

- Interview several brokers to find the best. The broker will have to provide advice about setting up your board of directors, provide guidance on establishing your governance structure, and mentor you through the process.

- Develop a relationship with a broker. Once you are able to establish a relationship with a broker, half the battle is won. The broker and legal counsel will provide critical guidance.

- Your broker will need to do due diligence. This speaks to the background of the persons who own the company, the executive and management of the company. It speaks to where the company has been to where it is now. It also speaks to articles of incorporation and all the documentation necessary to be listed.

- Establish a valuation of your company. This means that if you were to sell the business during the process, this is how much it would be valued. The share price is a derivative of that value and not the other way around.

- You will also need to have a road show. This is getting the public to learn about the company and, essentially, is selling your company. This will be followed by an investor briefing, which will allow you to share information on the company.

- Remember that there are fees involved in listing. Brokers will charge a percentage of the capital you are raising as fees. Legal fees and marketing are also important. Remember that each broker will also require a retainer fee. The bulk of the fees will be paid after the listing.

- Have a fact sheet because some persons may not read the prospectus.