Caribbean investors, it's time to get your money ready! There may soon be a flood of new companies coming to market with IPOs.
So there were some major updates coming out of CUMAX Wealth's Spring Investment Forum.
First of all, the Junior Market capital limit has officially been raised to 750 million Jamaican dollars. Before this, companies could only raise 500 million on the Junior Market. Anything over that and they had to move to the Main Market.
Now this is major because several companies have been waiting patiently on this increase before they did their IPO. Remember the Junior Market comes with several lucrative tax incentives. So if you can raise more money while still getting the same tax incentives, why not?
This move has been over a year in the making. The increase was announced in the 2024 budget debate by former Finance Minister Dr Nigel Clarke. Parliament passed the legislation in January 2025, and now it's finally been gazetted and is officially in effect.
So now I'm expecting a flood of companies to come to market. There could also be an uptick in secondary offers like APOs and rights issues because companies that were already at or near the cap, now have more room to grow.
This may be especially helpful for companies that are growing rapidly and need cash but aren’t out of their tax exemption period yet. Junior Market companies don’t pay income tax for the first five years, and for the next five years, they only pay half. Moving to the Main Market forfeits that tax break.
So like I said at the beginning, get your money because a lot of opportunities are likely coming your way.
And that's the bottom line.
What do you think about this news? Are you here for it, or still think the market is too weak?
And if you want to learn how to invest in Caribbean stocks, take my Investing for Beginners course.
Let's get this money!