CinemaONE debuts on TTSE

LIGHTS, camera, action! CinemaONE Ltd officially listed on the TT Stock Exchange (TTSE) yesterday and debuted on the new small to medium enterprises (SME) tier.

TTSE deputy chairman Ian Narine said CinemaONE is the first to enter the market and encouraged other small businesses to follow in their path. He hoped CinemaOne–the parent company Digicel IMAX, Gemstone and 4DX cinemas–will be the first of many companies to take advantage of the stock exchange to grow their businesses as the country continues its drive to diversify the economy. He said those on the SME tier can eventually gravitate to the main stock exchange.

"The SME was developed to create entrepreneurship and growth where thriving SMEs can acquire the necessary funding to fuel expansion while at the same time benefit from tax incentives. Listed SMEs have a benefit of a 10 per cent corporation tax break applicable for a five-year period after their listing," he said.

Narine advised that with an inflation rate of 7.2 per cent it was advisable to invest in the TTSE since it meant that in the next decade consumer prices may double. He added that while it may be risky in the short term, it outweighed the risk of not investing in the long term.

"Real estate and stocks listed on TTSE are among the few and possibly only TT dollar investment opportunities that can generate returns that can outpace inflation and stocks is the only one where you don't have to borrow money to acquire," Narine said.

CinemaONE had an initial public offering in October and made available to investors a 38 per cent stake—3,088,373 shares. The shares, valued at $10 each, was the company's way of raising just about $30 million to expand locally and regionally. The company sold less than half of the offered shares and raised $14 million.

On their entry on the TTSE, owners of CinemaONE Ingrid and Brian Jahra said they were excited to be breaking new ground. While they were disappointed that the target was not met, they hoped to be an inspiration to other like-minded business owners to list on the stock market. Ingrid, the CEO, said the money raised by the 400-plus investors who bought shares will go towards opening CinemaOne's Gulf City, La Romaine branch in time for the premiere of Avengers 4 in 2019. The aim, she said, is to take the One Woodbrook Place experience to the south.

When asked about piracy and whether that has affected their plans to expand, Brian, the chairman, said no. He added: "Theatre business is based on an eco-system and that eco-system is the motion picture producers, the distributor and the exhibitors. We are an exhibitor, we are generally protected because we generate 40 per cent of the overall income."

Notwithstanding piracy as a real threat, Brian said everyone loves a night out, so their aim was to create an experience that will encourage movie-lovers to come out of their homes and enjoy a movie and the experience.

TTSE chief executive officer Michelle Persad said the exchange was "expecting a rewarding experience" with the new listing and a cross-section of new investors.