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Listing SMEs on the stock exchange

Published: 
Thursday, September 27, 2018
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A viable small and medium enterprises (SME) sector is a substantial contributor to both economic and social transformation.

According to a business establishments survey of the Central Statistical Office (CSO), SMEs represent over 85 per cent of all registered business locally, contribute to more than 30 per cent of our gross domestic product (GDP) and employ a significant number of this country’s working population.

Yet despite their importance, SMEs face significant challenges that inhibit them from growing and contributing more effectively to economic development, innovation and entrepreneurship in T&T.

The T&T Stock Exchange Ltd (TTSE) is intent on developing an efficient and well-constituted ecosystem in T&T that supports further development of this market, particularly in today’s fast changing world where companies are required to grow at a quicker pace in order to survive. To this end, the TTSE has embarked on a series of initiatives that are fixated on ways to create opportunities for this segment and to provide a framework that expands the support services currently available to SMEs.

In 2012, the TTSE introduced the SME market, a junior stock market attached to an existing exchange which was developed to improve thriving SME’s access to equity funding. This SME Market of the exchange is intended to be used as a vehicle where SMEs can access the required level of equity financing needed to accelerate growth of their business, and thereby allowing them to comfortably advance into larger companies, while at the same time, benefit from a degree of local, regional and international visibility.

Companies listed in the SME market of the exchange can also enjoy tax concessions granted by the Government of T&T, which allows for a 10 per cent rate in corporation tax applicable for a maximum five-year period following its listing.

Some additional benefits of listing on the SME market include no applicable admission fee and reduced listing fees. Companies who wish to list on the SME market must have a subscription capital of TT$5 million – TT$50 million and will have the option to raise capital in either TT-dollars or US-dollars.

For further information on listing , please contact a licensed broker or visit the TTSE’s website at www.stockex.co.tt or call 868-625-5107 for further information.

Listed companies have benefited in various ways including increases in sales and profit, expansion of their operations into new products and markets, debt reduction and raising company and business profile. Trading on the Exchange also provides a basis for valuation for investors and allows the public, including the employees of the company, to participate in the success of the company.

The T&T Chamber of Industry and Commerce thanks Eva Mitchell, manager, market operations of the T&T Stock Exchange Ltd (TTSE) for contributing this article.

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