The AltX is the JSE’s board for good quality, small and medium-sized high-growth companies. The AltX provides smaller companies with access to capital while providing investors with exposure to fast-growing smaller companies in a regulated environment.
To be eligible for listing, a company must appoint and retain the services of a registered designated advisor (DA). A DA plays a similar role to a JSE sponsor but has different responsibilities. A DA also has to comply with quality controls, such as director education.
Companies listed on the AltX need to comply with the rules and regulations of the JSE and uphold high standards of corporate governance.
- The AltX (formerly AltX) was established in 2003.
- Since inception, more than 106 companies have listed on the AltX.
- More than R21.3 billion has been raised on the AltX since inception.
- More than 20 companies have migrated to the Main Board, demonstrating that the AltX is a catalyst for growth.
Learn more about the AltX
Why list on the AltX?
Companies can join the AltX to:
- issue new Shares;
- raise funds;
- widen their investor base; and
- have their Shares traded on a regulated market.
The AltX appeals to a diverse range of companies in all sectors including:
- Young and fast-growing businesses, including start-ups;
- Management buy-outs and buy-ins;
- Family-owned businesses;
- Black economic empowerment companies; and
- Junior mining companies.
Investing in the AltX
The AltX is for investors who understand the nature of the market and are prepared to accept the potential risk and rewards of investing in growing companies. If you are an investor, the AltX will expand your investment horizons, offering companies that comply with the rules and regulations of the JSE and uphold high standards of corporate governance. The listing requirements of the AltX place great emphasis on the initial and ongoing disclosure of company information.
The AltX is supported by the JSE’s full range of services. These help to provide a well ordered trading environment and include:
- Trading of AltX Shares on the same system as the Main Board;
- Market surveillance to eliminate irregularities;
- Dissemination of company information;
- Settlement of AltX Securities through Strate; and
- A chance to invest in South Africa's future corporate giants.
Explore your options and alter your expectations with the AltX.
How to list on the AltX
Once you have decided that a listing is the appropriate mechanism for your company to achieve its objectives, the process is as follows:
- Obtain the services of a registered DA.
- The DA performs a due diligence to determine the appropriateness and suitability of your company for a listing.
- The DA advises you on the various methods of listing and provides guidance as to the best method for your company.
- The DA assists you in compiling an application letter and a business plan for submission to the Issuer Regulation Division.
- Based on the presentation your board of directors and your DA make to the AltX Advisory Committee, a recommendation will be made to the Issuer Regulation Division.
- Once the JSE’s Issuer Regulation Division accepts your application, your DA will help you to compile all the documentation as stipulated by the AltX listing requirements and other relevant legislation.
- Once the content of the documentation has been verified, the JSE will provide you with a formal approval letter.
Depending on a number of factors, including the complexity of the method chosen for your listing, this process may take between 8 and 12 weeks.
Directors’ induction programme
A directors’ induction programme (DIP) is a compulsory education programme for all executive and non-executive directors of AltX companies. Main Board and non-listed company directors are also welcome to attend. The AltX and the Institute of Directors collaborate in offering this programme to ensure that company directors are aware of the latest information related to the JSE Listings Requirements, the principles and practices of corporate governance, the Companies Act and other relevant topics.
To register or make enquiries, please contact Thilomi Govender at 011 430 9900.
The main role of a designated advisor (DA) is to competently, professionally and impartially advise the applicant company on all its responsibilities during the application process and the requirements for maintaining its status once listed.
The DA must ensure that:
- the company complies fully with the applicable JSE and AltX Listings Requirements;
- all relevant documentation required by the Listings Requirements has been submitted;
- each company brought to the JSE by the DA is suitable for listing;
- each pre-listing statement is compliant with the Listings Requirements and has been completed accurately and fully;
- all directors of each company have the necessary expertise and experience and understand the nature of their responsibilities under the Listings Requirements, the Companies Act, the SRP Code and GAAP, and that they are aware of the expectation to prepare and publish all information necessary and that directors’ declarations need confirmation and verification;
- all new appointees to the board of directors of the company are fully briefed as to the nature of their responsibilities;
- all directors complete a directors’ induction programme within two months of their appointment (if newly appointed) or upon confirmation of acceptance on the AltX;
- the directors of each company are informed on time of any amendment to the Listings Requirements or other regulations;
- all periodical financial information announcements are reviewed with the directors prior to publication to check accuracy and full disclosure;
- regular reviews are held of the company’s actual trading performance and financial condition to ensure appropriate disclosure of information to investors; and
- at least one of the DAs attends all company board meetings in an advisory capacity.