With The Bahamas being granted status as a Designated Offshore Securities Market (DOSM) opening the door for international investors to trade on the Bahamian stock market, the country's securities exchange is actively crafting its grand plan to prepare for the new wave of financiers.
Keith Davies, the president of the Bahamas International Securities Exchange (BISX), told Guardian Business that the company is busy at work trying to precisely roll out its initiatives that are planned since achieving DOSM status, pointing to the importance of introducing the plans in an effective and timely manner.
"We're still trying to implement some things to take advantage of it, and the plans are once we achieve recognition, we are putting in place a number of things we have lined up," Davies said. "Those plans will come into fruition over the course of the year." In layman's terms, the DOSM status means that U.S. corporations can go to BISX to list securities it wants to market to non-U.S. persons. The designation falls under the Rule 902 (b) of Regulation S of the U.S.'s Securities Act of 1933. BISX joins over 15 other countries that also have the status.
While Davies wasn't able to discuss any specific items that will come on stream, he mentioned that getting the word out on The Bahamas' newly acquired status wouldn't be a problem. He added that despite the country already being an attractive destination for investors, a great deal of emphasis will be placed on the marketing side. "There's always a desire by investors to seek out new sources of capital and funds," he said. "One thing we intend to do is make ourselves known to entities in that line of business. We have a number of contacts and linkages in the U.S., UK, Latin America and Asia and we plan to be in touch with them.
"That process will take time; a lot of legwork has to be done beforehand and we are taking the necessary steps to ensure that everything is in place." The BISX chief added that paying attention to detail is critical when diving into such a new arena, and making sure that persons on the Bahamian side are as fully educated as prospective investors. He hinted in an earlier interview that a U.S.-based firm "very familiar with The Bahamas as a jurisdiction" has already expressed interest.
The company also has its hands tied with launching its Micro Listing tier, which will be targeted towards small and medium-sized enterprises looking for up to $1 million in financing. Davies said the listing will come on stream in the coming months, and the company will do its best on educating entrepreneurs on the ins and outs.
"The micro listing is something that will be moving forward this year; we have a plan that requires us to take certain key steps that take this into fruition," Davies said. "There are levels of approvals and dealings with the Securities Commission, and a number of other items that come with the education process."
While the plate for 2012 already seems full for BISX, Davies added that the company still has a large appetite for success coming off the heels of a promising 2011. "We are settling into 2012 really well and we are continuing to concentrate on success," he said. "We hope to expand the capital market listing base and we hope to explore multi-jurisdictional listings in the future."
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