What about the AltX?

Finweek English Edition - - COVER STORY -

Af­ter a num­ber of false starts with a Ven­ture Cap­i­tal Mar­ket (VCM) and De­vel­op­ment Cap­i­tal Mar­ket (DCM), the JSE ap­pears to be de­vel­op­ing a vi­brant mar­ket for smaller busi­nesses look­ing to ac­cess global cap­i­tal mar­kets.

While liq­uid­ity and in­ter­est in smaller com­pa­nies re­mains muted, the AltX ex­change has proven pop­u­lar with en­trepreneurs who own promis­ing busi­nesses. If you are think­ing of list­ing, th­ese are the cri­te­ria you need to ful­fil: (a) The com­pany must em­ploy the ser­vices of a recog

nised Des­ig­nated Ad­viser (DA). (b) The com­pany must have share cap­i­tal of at least R2 000 000 (in­clud­ing re­serves but ex­clud­ing mi­nor­ity in­ter­ests). (c) The pub­lic shall hold a min­i­mum of 10% of each class of eq­uity se­cu­ri­ties and the num­ber of pub­lic share­hold­ers shall be at least 100. (d) The di­rec­tors must have com­pleted the

Di­rec­tors In­duc­tion Pro­gramme ments. (d) The ap­pli­cant must ap­point an ex­ec­u­tive fi­nan­cial di­rec­tor and the DA must be sat­is­fied (and sub­mit con­fir­ma­tion in writ­ing to the JSE) that the fi­nan­cial di­rec­tor has the ap­pro­pri­ate ex­per­tise and ex­pe­ri­ence to ful­fil their role. (f) The is­suer must pro­duce a profit fore­cast for the re­main­der of the fi­nan­cial year, dur­ing which it will list one full fi­nan­cial year there­after. (g) The is­suer’s au­di­tors or at­tor­neys must hold in trust 50% of the share­hold­ing of each di­rec­tor and the DA in such ap­pli­cant is­suer from the date of list­ing, and a cer­tifi­cate to that ef­fect must be lodged with the JSE by the is­suer’s au­di­tors or at­tor­neys. The rel­e­vant se­cu­ri­ties, whether new or ex­ist­ing, are to be held in trust un­til the pub­li­ca­tion of the au­dited re­sults. (h) At least 25% of the di­rec­tors must be non-ex­ec­u­tive.

(DIP) or must make ar­range-

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