In the next few days, the first Dominican company to issue shares on the stock market will be released. This will be a milestone for the country that demonstrates the strength and confidence in this sector that maintains exponential growth.
This will allow the democratization of capital in the country, highlighted the Superintendent of Securities, Gabriel Castro, together with officials of the institution and representatives of the sector during the Listín Breakfast.
Castro indicated that this achievement is the result of the initiatives that have been developed to promote the sector, such as the approval of Law 163-21 promoting the placement and marketing of publicly offered securities. This law establishes an incentive for three years to all companies that enter the market with part of their capital. The incentive consists of lowering the income tax from 27% to 15%.
The senior partner (majority partner) of Investa-Capital Partners, José Gior Ariza, explained that this means that the company will have access to financing not only with banks, but will also be able to access a large “pool” of US$34,000 million under conditions more competitive, he noted.
Gior said that this is a great platform because if a businessman needs US$2,000 million and does not have the capital, he can issue shares or bonds in the market, which in the past was impossible.
He added that this will be an “escape valve” for many families that sometimes cannot handle the pressure from the companies because there comes a time when they have so many people inside that they have to find a way to distribute liquidity or disinterest some members.
In recent years, both the volume of the stock market, transactions and registered accounts have kept increasing, according to the statistics shown by the authorities of the sector.
It is expected that the market will continue to develop even more, especially since the Dominican stock exchange has now associated itself with Chile’s, which will give the local market a greater boost.
There are currently 55 investment funds in the country that manage around 3% of the gross domestic product (GDP).
It is the number of accounts registered in the stock market until 2021. Most are from individuals.
The total volume settled in the stock market last year amounted to US$84,776 million.
Percent of GDP
Transactions carried out in the stock market in 2021 represented 90% of GDP.
a huge pool
This year the securities in custody of the market amounted to US$34,000 million.
Last year, 25 public offers were approved for an amount of US$3,254 million.
Gabriel Castro González is an economist and politician who has headed the Stock Market Superintendence since 2012. He has promoted various initiatives in favor of the sector.
Its functions consist of directing the institution and ensuring compliance with the laws, regulations and standards that guarantee the proper functioning of the stock market.