This archive report was first published on 26 August 2019.
Since its inception in October 2003, the Johannesburg Stock Exchange's (JSE) AltX has been a game-changer for small and medium-sized businesses looking to catalyze their growth. This public exchange provides companies with an option to list on the JSE's main board when they are ready, with a remarkable 38 migrations to date.
As of April 2019, AltX had a total market capitalization of Ksh122.8 billion (R18.09 billion) and had raised Ksh435 billion (R64.24 billion) since its listing. The board currently features 44 companies, offering a cost-effective alternative listing with affordable annual listing fees.
The JSE simplifies listing on its securities through its fast-track listing process, which offers an accelerated listing for international companies admitted on major stock exchanges for at least 18 months. This process takes as short as 3-6 weeks, with no pre-listing statement required. For instance, Alphamin Resources benefited from AltX's fast-track listing and successfully concluded a Ksh5.7 billion (R849.8 million) private placement.
AltX Listing Requirements ¶
AltX allows companies to access the benefits of listing on the JSE, including access to deep capital pools, with modest requirements. To list on the board, a company requires a share capital of Ksh13.5 million (R2 million) and a designated advisor. Additionally, the company needs two transactions categories with a threshold of 50% and a 10% shareholder spread. AltX charges an annual listing fee of Ksh230,000 (R34,000) and requires all directors to attend a directors' induction program before listing.
Unlike the main board, listing on AltX does not require a company to have any pre-tax profit history. Furthermore, the listing option offers a voluntary publication in the press, unlike the main board which requires compulsory press publication.
By providing an alternative listing platform for smaller companies, the JSE is able to extend listing to more companies. This approach could be replicated by smaller exchanges across Africa to increase the number of listed companies.
