SA’s first exchange for growing business

SA’s first exchange for growing business

South Africa’s JSE Securities Exchange has announced the first alternative stock exchange in Africa that will list small and medium growing companies. Known as AltX, the initiative is endorsed and supported by the Department of Trade and Industry (DTI), which believes that the establishment of the alternative exchange will help to promote black economic empowerment (BEE) in the country.
Russell Loubser, CE of the JSE, pointed out that securities exchanges should be natural sources of capital at every stage of development, adding that it was appropriate that they make provision for younger companies as well. AltX fills this gap, providing smaller companies with access to much-needed capital and facilitating smoother growth.
The new market is differentiated from the main board at the JSE in various ways, with separate listing requirements. Companies that list on AltX are considered to be future large companies that will eventually migrate to the main board.
The new market, which has reduced listing fees, will be supported by the full range of JSE services, which includes the trading of shares on the same system as the main board, market surveillance to eliminate irregularities and settlement of AltX securities through STRATE, the authorised central securities depository. ”We believe that the establishment of AltX will promote BEE and assist in creating sustainable employment. Small and medium enterprises play a significant role in our economy and we are wholeheartedly supportive of initiatives which will enhance this sector,” said DTI director-general Dr Alistair Ruiters.
Companies will need to comply with new AltX listing requirements, appropriate for small and medium companies. These requirements place great emphasis on the initial and ongoing disclosure of company information.
The alternative exchange is expected to start trading in October and companies are currently being sought to join AltX to issue new shares, raise funds, widen their investor base and have their shares traded on a regulated market.