PDSnet Glossary

Term

Categories

Introductory Technical Fundamental Economics Opinion Sectors International Regulatory Other Markets

Versions

Name	synonyms = 1, variations = 2, abbreviations = 3

Publish: (0 = no, 1 = yes)

Definition

The Alt-X is part of the JSE. It is a board which is available to those companies which cannot qualify to list on the "main board". The listing requirements for the Alt-X include: (1) The company must appoint a "designated advisor" (DA); (2) the company must have a share capital of at least R2m; (3) it must have 10% of its shares in the public domain with at least 100 public shareholders; (4) its directors must have completed the induction program; (5) it must produce a profit forecast for the remainder of its current year and the next full year following; (6) half of the shares of the DA and the directors must be held in trust until after the production of the financial results mentioned in (5) - after which half of those may be released and the rest in the year after that; (7) at least 25% of the directors must be non-executive directors. Typically, companies begin on the Alt-X and then progress to the main board once they are big enough. Many of the companies listed on the Alt-X offer excellent investment opportunities for private investors. The Alternative Exchange or Alt-X was brought in by the JSE to replace the Venture Capital Market (VCM) and the Development Capital Market (DCM) and its main purpose is to allow smaller shares to list than are allowed on the main Board. Most stock markets around the world have some sort of junior exchange to accommodate smaller companies wanting to list. The New York Stock Exchange (NYSE) has the American Stock Exchange or “Amex”. The London Stock Exchange (LSE) has the Alternative Investment Market or AIM. The exchange was set up in partnership with the Department of Trade and Industry (DTI), the Wits Business School and the Institute of Directors. Today, the Alt-X has 27 shares trading dominated by Alphamin with a market capitalisation of R13,4bn, followed by Heriot (R3,46bn) and Jubilee (R3,36bn). The remaining shares include, Copper360, Renergen, Upartners, Transcend, Astoria, Vunani, and Workforce.
More information can be found at: <a href="https://www.jse.co.za/content/JSEProcessItems/AltX%20Listing%20Requirements.pdf">https://www.jse.co.za/content/JSEProcessItems/AltX%20Listing%20Requirements.pdf</a>

Edit Glossary Term