Once again, it is a pleasure to be here in Grenada, to mark the listing of yet another
Grenadian company – GRENREAL Property Corporation Ltd - on the ECSE. Just last
week, we were at the ceremony marking the listing of Grenlec, and 3 weeks before that
we listed RBGL. We are indeed on a roll in Grenada!
Today’s listing is somewhat different to the two earlier listings. It is historic, in that it
presents a number of firsts for the ECSE, not only in terms of Grenada, but across the
entire market. GRENREAL is the first company to go public through an ECSE listing; it
is the first real estate company to list on the Exchange; and it is the first to list in the
ECSE’s Entry Level Tier. These differences should excite the people of Grenada and the
wider body of investors throughout the region.
GRENREAL’s listing today, is meant to transform the company from one that has been
privately held by a mere 6 shareholders, to a publicly held company with a broad range of
shareholders. From today, everyone who wishes will have an opportunity to participate in
the ownership of the company and gain some of the returns that the existing owners are
already enjoying.
Typically, when there is a listing of a company that is already public and whose shares
are already widely held, there are usually no shares available for others who may be
interested in investing in the company. Often times, potential investors and their brokers
lament the fact that while there is buy interest, none of the existing holders wish to sell,
and there is sometimes no trade in the shares for a protracted period. With GRENREAL,
however, this will be different. Today, upon listing, there will be a block of shares that
will be put onto market. Investors wishing to acquire this security are therefore assured
that they will be a ready supply. That is good news, and the people of Grenada and the
rest of the region should be excited at this prospect.
GRENREAL, which will be known in the market as GPCL, is the first company to list in
the Entry Level Tier. All of the previously listed companies are in the Large
Capitalisation Tier, having all been long existing public companies with market
capitalizations in excess of $10 million at the time of their listing. GRENREAL is
different, it was hitherto now a private company with a very restricted, if select,
shareholder list. It has only been in existence for a relatively short period – just under 4
years - and therefore would not have built up the same track record as a company such as
Grenlec or Republic Bank Grenada Ltd. New investors, therefore, have the opportunity
to get into the company at a relatively early stage, and to see their investment in grow as
the company matures.
I must point out that listing in the Entry Level Tier does not necessarily mean that a
company is any less sound and worthy of investment than one in the Large Capitalisation
Tier. It does not necessarily connote more risk. Companies in the Entry Level Tier will
meet the same disclosure requirements as the large cap tier and will be regulated in the
very same way. Investors could therefore rest assured that, while these companies may
not be considered the blue chips of the market, they are not mezzanine or junk. However,
given their relatively early stage, the prospects for capital appreciation may be greater
than that for the more mature stage companies. I must recommend, of course, as they
should investing in any company, that potential investors study the Prospectus that has
been prepared, and to rely on the advice of their broker, in deciding if the investment is
suitable to their circumstances.
It should also be noted, that the Entry Level Tier-listed companies are not OTC-traded
companies, which are traded on an Exchange, without meeting the listing requirements
and disclosure standards. This, let me be clear is not the same thing. The Entry Level
Tier companies enjoy a full listing status on the ECSE. So GRENREAL will be a fully
listed company on the ECSE as of today!
The listing of GRENREAL on the ECSE, the first real estate company to do so, also
introduces a new dimension to the market. It presents investors an opportunity to
diversify their portfolios of securities by introducing both a property and a tourism
element, which will have significant socio-economic benefits beyond the mere financial
return on their investment. Investor will have the ability for the first time on the ECSE to
participate in this very buoyant real estate development and tourism sectors. Often times
we see that much of the development in the tourism sector in member states is out of the
reach of the peoples of region, seemingly the sole preserve of the foreign investor. This
listing today, therefore, creates an opportunity for the people of Grenada and the rest of
the region to participate along side the foreign investors in the ownership of the
infrastructure of the leading sector of the economy. Hopefully, GRENREAL pioneering
step will serve as an example to similar companies in the other member states, and that
they too will list on the ECSE.
I am therefore pleased to welcome GRENREAL Property Corporation Ltd to the ECSE
and to mark the listing, present the Chairman this commemorative plaque.