About AltX AltX, the alternative exchange, is a division of the JSE Limited (JSE) is an exciting parallel market focused on good quality small and medium sized high growth companies. AltX is designed to appeal to a diverse range of companies in all sectors. AltX plays a vital role within the JSE, by providing smaller companies not yet able to list on the JSE Main Board with a clear growth path and access to capital. To be eligible for listing, a company must appoint and retain the services of a registered Designated Advisor - a similar role to the current JSE Sponsor but with different responsibilities. AltX in collaboration with the Wits Business School (WBS) and the Institute of Directors (IoD) provide the Directors Induction Programme (DIP). DIP is a compulsory education programme for all executive and non-executive directors of AltX companies. As a company, you can list on AltX to issue new shares, raise funds, widen your investor base and have your shares traded on a regulated market. As an investor on the look out for exciting and fresh opportunities, AltX will expand your investment horisons with companies that need to comply with the rules and regulations of the JSE and participate in high standards of corporate governance. This is your chance to invest in South Africa's future corporate giants. Explore your options and alter your expectations with AltX. Download the AltX brochure Listing benefits Why list on AltX? The decision to list your company’s shares on a public market is a significant one. It must be based on an honest and realistic assessment of your company and it must be made after full consideration of all the alternative routes by which your business might achieve its goals. If your company meets the AltX Listing Requirements and is committed to high growth and innovation, AltX offers extensive benefits. Financial A successful initial public offering (IPO) can immediately bring considerable proceeds to the company. Subsequently, public companies may return to the market for additional capital through secondary equity offerings. New companies need capital to fund their growth, and at some point the alternative funding mechanisms which nurtured them through the early years will give way to the vastly larger financing capacity of the securities market. There is evidence to support the notion that once a company is a publicly traded entity, the access to both equity and debt capital becomes easier. Financial benefits include: - Overcoming borrowing constraints;
- Better bargaining position towards financiers;
- Raise long term capital;
- Strengthen balance sheet;
- Raise capital for the growth of the group;
- Raise finance for the company
- Expands access to capital;
- Helps with the transfer of family holdings; and
- Offers financial partners opportunities for capital gains.
Company There is a certain prestige in being a listed entity. The listing may enhance the company’s status in its own market space whilst at the same time attracting new investors. The continuous coverage of the market and the company should create a better image amongst its suppliers, customers and bankers. The listed company is able to offer shares and share options to its employees increasing the commitment and motivation of their employees. Company benefits include: - Aggregation of private information in stock prices helping to signal product quality and to improve investment decisions;
- Enhanced company status among suppliers, customers and bankers;
- Increase in the number of business offers received;
- Greater use of management documents and reports;
- Attract new investment / investors;
- Complements product marketing;
- Expands business relationships; and
- Increases employee commitment and recruiting power.
Stakeholder Listed companies are required to publish all relevant information so that the stakeholders in the company are able to make informed business decisions. Stakeholder benefits include: - Better quality of information disseminated internally and externally;
- Create a liquidity path for existing shareholders;
- Facilitation of financial participation by employees;
- Realising value for existing shareholders; and
- Provides flexibility in personal financial planning.
Employee Significant motivational benefits may result from the implementation of a share incentive scheme for management and staff. Listing would make such a scheme attractive to employees and facilitate its operation. Employee benefits include: - Increased sense of belonging among executives and management;
- Increased professional recognition for the General Manager / Chief Executive Officer; and
- Management and employee motivation.
|