(DAILY MAIL) LuSE ready for SMEs
LuSE ready for SMEsBy NANCY MWAPE
LUSAKA Stock Exchange (LuSE) says the third market tier is ready for Small and Medium Enterprises to apply for admittance although listing rules have not been adequately publicised.
The LuSE third tier, is a platform for emerging companies in their growth stages and would operate parallel with the main board.
In an interview, LuSE general manager, Beatrice Nkanza said the Securities and Exchange Commission approved LuSE’s applications for the establishment of the third tier last year.
Mrs Nkanza said LuSE management had drawn up a roadmap to sensitise the public on the third tier.
She said a sensitisation workshop was held in Lusaka with stakeholders and follow up meetings would be held with eligible companies.
She said if a company felt it was ready to list, applications could be submitted to LuSE.
“Most people think the third tier market is targeted at micro and small companies. We are looking at middle and prospective growth companies,” she said.
She said to list on the third tier market; a company must show that it has been operational for a minimum of five years, increased revenue and market shares for three successive years.
She said the purpose for the third tier was to allow for less stringent listing requirements thereby reducing the direct cost and enable firms to raise funds and expand.
Mrs Nkanza said to list on the exchange, a company had to have the asset value of between K250 million and K6 billion.
Other listing requirements include a company having at least 30 shareholders and the public should hold a minimum of 10 per cent equity.
She said it was important that firms had a structure with a board and a chief executive officer.
She said a company must have a designated advisor (broker) who is retained and able to help the firm meet listing and post listing requirements.
Mrs Nkanza said the designated advisors would help companies put their house in order and adhere to corporate governance.
She said the market would facilitate funding of emerging companies to overcome conditions of limited capital.
She said the market would also provide an alternative source of interest free and cheaper long-term capital.
She said a third tier is an organised and transparent system for emerging companies to access capital from public sources.
posted by MrK @ 6:23 PM
0 Comments:
Post a Comment
Subscribe to Post Comments [Atom]
<< Home