Why list on AltX?
AltX, the alternative exchange, is a division of the JSE Limited. It is a parallel market focused on good quality, small and medium sized high growth companies. AltX provides smaller companies a springboard onto 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. They also have to comply with other quality controls such as director education.How to list on AltX
You will have to appoint a designated advisor (DA), who will guide you through the listing process, and all of your company’s directors will have to attend a directors’ induction programme.
The process includes the following steps:
- The DA will perform a due diligence to determine the appropriateness and suitability of your company for a listing.
- The DA will advise you on the various methods of listing and provide guidance as to the best method for your company.
- The DA will help you to compile an application letter and a business plan for submission to the JSE’s 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 several factors, including how complex a method is chosen for your listing, the listing process will take between eight and 12 weeks to complete.
Attend a directors’ induction programme (DIP)
If you are an executive or non-executive director of an AltX company, you must attend a directors’ induction programme (DIP). Main Board and non-listed company directors are also welcome to attend this education programme.
AltX and the Institute of Directors of South Africa (IoDSA) collaborate in offering this programme to ensure that company directors are up to date on the JSE Listings Requirements, the principles and practices of corporate governance, the Companies Act and other relevant topics.
To find out more or to register, please call the IoDSA on 011 035 3000 or email firstname.lastname@example.org.
Considerations before listing
The decision to list your company’s shares on a stock exchange 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.
Consider the following questions:
- Where is our current business plan taking us?
- What are our likely capital requirements?
- How strong is our competitive position and how can it be maintained or strengthened?
- What is the quality of the management team, both at board level and throughout the company and does it need strengthening?
- Are all members of management working to the same agenda?
- What outside advice and perspective - such as non-executive directors - does the board have access to?
- What will attract investors to the company and are we ready to commit time to communicating with investors?
The decision to list your company needs to be made once you have realistically assessed:
- your company,
- its management,
- stage of development,
- long-term strategy,
- goals and
- future prospects.