The JSE says it is "astounded" at the large number of companies requesting information about listing on its new alternative exchange, AltX, for small and medium growing companies.
"A number of organisations have now submitted applications to become designated advisers to the new market," says AltX manager Noah Greenhill.
"We evaluate the expertise and experience of these prospects and we will put interested companies in touch with approved designated advisers."
Investec Corporate Finance has been appointed as the first designated adviser for the exchange.
"We will be extremely selective about the companies we take to market," says Robert Smith of Investec. "A comprehensive due diligence investigation into the management and business of each organisation we represent will be conducted.
"We may even consider taking a private equity stake in the businesses we back. Investec takes a long-term view on AltX and we see the market as an opportunity to find young winners and to support them throughout the growth cycle.
"Due to the broad nature of our business, we are also able to offer companies a number of other services including project financing and structured financing. We would eventually hope to take the AltX companies we represent to the main board.
"Consequently we are more concerned with quality than quantity."
When a company applies for a listing on AltX, the designated adviser needs to be satisfied that it is appropriate. In addition to meeting the listing requirements, the company and its appointed designated adviser present to the AltX listing advisory committee for approval of the listing. This is a further check as to the suitability of the company.
Designated advisers must also confirm that the company directors have been advised and guided on their responsibilities and obligations under the listing requirements.
An AltX company is required to retain a designated adviser at all times.
The new market is expected to open for trading in late October.
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