Launch of the Alternative Market Alt-M Taj Pamodzi Hotel 22 nd April, 2015.
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Transcript of Launch of the Alternative Market Alt-M Taj Pamodzi Hotel 22 nd April, 2015.
Launch of the Alternative MarketAlt-M
Taj Pamodzi Hotel22nd April, 2015
Background
• October 2003, Chingola• LuSE presentation to IESC/ZCSMBA
managed Copperlink Program and KCM Small Business Unit workshop
• SMEs called for a structure on LuSE which would make access to its capital raising mechanism easier
www.luse.co.zm 2
Background cont’d…
• LuSE estb. Steering Committee:– LuSE (Brian Tembo/Celine Nair)– SEC (Queen Shachile)– ZCSMBA (Maxwell Sichula)– IESC (Nathan DeAssis)– MoCTI (Yvonne Chileshe)– ICC (Juliet Munro)– Wits (Charles Sichangwa)– Meliora (Zoran Zuze)– BDO (William Saunders)
www.luse.co.zm 3
Long Consultative Process
www.luse.co.zm 4
20051st consultative workshop Lusaka and Kitwe
2006 ZDA/ZSIC sponsored meetings Lstone & Chipata
2007 Rules developed
2014 PSD supported nationwide sensitization meetings
Small• <50 employees• Annual turnover
K200,000 – 1,000,000
Medium• Annual turnover
K1,000,000 – 20,000,000
• >50 employees
www.luse.co.zm 5
SME National Definition
Some Sources of Fundsfor Small Business
SME
Savings
Family &
Friends
Banks
Grants
Angels
Venture Capital
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The Missing Link!
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Coming to Market
Company X Plc(Securities registered)
Listed
Main
Alt-M
Unlisted Quoted
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Introducing the LuSE Alternative Market
“LuSE Alt-M is a market for small to medium companies that are in a growth phase and applicants that meet the criteria for listing on the Main Board will not ordinarily be granted a listing…”
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Alt-M
Turnover
Employees
# Shares
HistoryBoard
DIP
DA
Employees & Turnover
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Section 21.3(b)“An applicant issuer shall have a minimum of up to twenty (20) and a maximum of hundred and fifty (150) employees, a minimum trading turnover of K250, 000 and a maximum trading turnover of K20 million.”
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# Shares & Public Spread
• Not less than 500,000 equity shares in issue.
• The public must hold a minimum of 10% of each class of equity securities and the number of public shareholders shall be at least 30
• Excludes DA held shares
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History/Projections
• Show operation at least 5yrs and/or• Increased revenues and market share for 3
successive years and/or• Submit audited financials of the Preceding
financial year end and/or • Produce a profit forecast for remainder of fin. Yr
and 1yr after and/or• Submit a business plan for the next 5 yrs of its
operations
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Board
• Minimum of 5 board directors
• Majority being non-family members
• Chairman and Chief Executive shall be separated after 5yrs following the issuer’s listing
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Disclosure
• Alt-M listed companies will be required to publish announcements via the Central Information Disclosure System (CIDS)
• CIDS is a web-based information system
• It’s a minimum requirement and Co.s encouraged to voluntarily publish in the press
www.luse.co.zm 14