October 30, 2013
Johannesburg, 30 October 2013 – This week the Johannesburg Stock Exchange (JSE) marks the 10th year anniversary of AltX the exchange’s board for fast-growing small and medium enterprises.
Since inception 106 companies have listed while 22 companies have subsequently migrated to the JSE’s Main Board. The top three sectors by market cap are industrials, financials and basic materials which constitute 91% of the overall market cap. AltX has a market capitalization of R15.4 billion with 60 companies currently listed.
“Ten years on we believe that AltX is even more relevant today as South Africa desperately needs to grow small businesses to create employment. AltX provides smaller companies not yet able to list on the Main board with a clear growth path and access to capital. That a number of companies have grown sufficiently to qualify for migration to the Main Board is testimony to AltX clearly meeting its objectives,” says Nicole Cheyne, Client Relationship Manager for AltX.
Cheyne believes that a listing on AltX offers companies numerous benefits including access to large investor pool and positioning the company for greater growth. A listing provides companies with greater opportunities for profiling and enhanced relations with stakeholders including banks, suppliers, distributers and customers. AltX companies are also better able to retain and attract talent through share options.
JSE research amongst AltX executives strongly indicate that they believe that their listing has helped them meet their objectives whether these be raising capital, improving business processes or distinguishing them from their unlisted peers. Over 92% of respondents surveys indicate that they made acquisitions post their listing indicating that AltX is a catalyst for growth.
For investors, AltX offers investment opportunities in high-growth companies with solid fundamentals. “Investors have the peace of mind that a listing on the AltX goes hand in hand with a requirement that companies comply with all the rules and regulations of the JSE and participate in the high standards of corporate governance,” says Cheyne. The latest World Economic Forum (WEF) Global Competiveness Report released in September this year ranks South Africa first out of 148 countries for regulation of securities exchanges for the fourth consecutive year.
About JSE Limited
As South Africa’s only full service securities exchange, the JSE connects buyers and sellers in five different financial markets, namely equities, equity derivatives, commodity derivatives, currency derivatives and interest rate products. The JSE Ltd offers the investor a truly first world trading environment, with world class technology, surveillance and settlement in an emerging market context. It is amongst the top 20 largest equities exchanges in terms of market capitalisation in the world. In terms of derivatives, the JSE is currently ranked the 20th largest exchange by the Futures Industry Association (FIA).