Established in 2003, the alternative exchange or commonly referred to as AltX, is a parallel market focused on providing good quality, small and medium-sized high-growth companies with a growth path and access to capital.
AltX offers companies several benefits, including access to a large investor pool and the opportunity to ideally position the company for greater growth. An AltX listing provides companies with greater opportunities for profiling and enhanced relations with stakeholders, including banks, suppliers and customers. AltX companies can also better retain and attract talent through share options.
To be eligible to list on the JSE, a company must appoint and retain the services of a registered designated advisor (DA). This role is similar to that of a JSE sponsor but with different responsibilities. A company must also comply with other quality controls, such as director education and (insert here) .
How to list on AltX
The process includes the following steps:
- Your company must appoint a DA to guide you through the listing process.
- The DA will perform due diligence to determine the suitability of your company for a listing.
- The DA will advise you on the various listing types and best fit 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.
- Your company and DA will present your case for listing to the AltX Advisory Committee and the AltX Advisory Committee will make a recommendation on your application to the Issuer Regulation Division.
- If the JSE’s Issuer Regulation Division accepts your application, your DA will help you to compile the documents required by AltX listing requirements and other relevant legislation.
- Once the contents of the documentation have been verified, the JSE will provide a formal approval letter. Depending on several factors, including the complexity of your listing, the listing process will take between eight and 12 weeks to complete.
- Your company directors must attend a directors induction programme.
The Directors’ Induction Programme (DIP)
Executive and non-executive directors of AltX companies must attend a Directors Induction Programme (DIP).
AltX and the Institute of Directors of South Africa (IoDSA) collaborate efforts to offer this programme for the purpose of ensuring that directors are updated on the JSE Listings Requirements, the principles and practices of corporate governance, the Companies Act and other relevant topics.
Main Board and non-listed company directors are also welcome to attend this programme.
To find out more or to register, please call the IoDSA on 011 035 3000 or email [email protected].
The decision to list your company’s shares on a stock exchange is significant, as it will shape your company’s future direction and increase your obligations to external parties, including investors. This means that you must make an honest and realistic assessment of your company after fully considering all the alternative routes by which your business might achieve its goals.
Questions to consider.
- 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 our management team, both at board level and throughout the company and does it need strengthening?
- Are all members of management working toward the same goal
- What external advice and perspective does the board have access to? For example, on-executive directors, etc.
- What will attract investors to my company and are we ready to commit time to communicating with investors?
The decision to list your company must be made once you have realistically assessed:
- Your company’s overall performance
- Your company’s stage of development
- Your company’s resources
- Your company’s management
- Your company’s long-term strategy
- Your business goals
- Your business prospects