The Bodibeng Technology Incubator (BTI), a Section 21 company that provides business incubation services to the ICT sector, and AltX, the SME division of the JSE, is hosting an event on the 23 April where the listing of small to medium sized companies on the JSE will be fully explained.
Traditionally listing on the stock exchange is limited to large organisations with a three year profit history and share capital of at least R25 million, however following the success of similar ventures in the UK and Australia, AltX (Alternative Exchange) was launched in October 2003. The restrictions and requirements for listing on AltX is less onerous than that of the Main Board. It is also cheaper and so is more accessible to smaller companies and BEE enterprises with little collateral with which to apply for finance from banking institutions.
Brian Brown, Node Manager at the BTI, says, "BTI acts as a catalyst between growing SME enterprises and formal business. Not only do we provide mentoring and other business services, but we also advise on finance opportunities that might be appropriate to our clients. Often these investments have very strict criteria that have to be met, and are therefore not suitable for a broad range of companies. This is what makes the founding of AltX very exciting. AltX offers all emerging companies the opportunity of gaining capital, prestige and recognition all at once."
According to Wawa Damane, Chief Director of Enterprise Development at the Department of Trade and Industry, "AltX will actively help raise awareness among investors of the possibilities of investing in small and medium enterprises and also open new sources of capital for growth-oriented small businesses by mobilising funds".
The Manager for AltX, Noah Greenhill says, "we want to make the environment in which SMEs can raise capital more friendly, more accessible."
Noah Greenhill will be the keynote speaker at the BTI / AltX event, and he will undertake to explain how to decide of your company should be listed. He will also outline the costs and requirements involved in listing, which for example includes a compulsory Directors Induction Program.
While enterprises in any industry or sector can list on AltX, this BTI / AltX event is only open to companies that fall in the ICT sector. Entry to the event is free so long that your intention to attend has been registered on the BTI web site, www.bti.co.za.
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