Transcript Launch of the Alternative MarketAlt-M

Launch of the Alternative Market
Alt-M
Taj Pamodzi Hotel
22nd 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
SEC
ZCSMBA
IESC
MoCTI
ICC
Wits
Meliora
BDO
(Brian Tembo/Celine Nair)
(Queen Shachile)
(Maxwell Sichula)
(Nathan DeAssis)
(Yvonne Chileshe)
(Juliet Munro)
(Charles Sichangwa)
(Zoran Zuze)
(William Saunders)
www.luse.co.zm
3
Long Consultative Process
2007 Rules
developed
2014 PSD
supported
nationwide
sensitization
meetings
2006 ZDA/ZSIC
sponsored
meetings Lstone &
Chipata
2005
1st consultative
workshop
Lusaka and
Kitwe
www.luse.co.zm
4
SME National Definition
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
Some Sources of Funds
for Small Business
Savings
Family
&
Friends
Venture
Capital
SME
Angels
Banks
Grants
www.luse.co.zm
6
The Missing Link!
www.luse.co.zm
7
Coming to Market
Main
Listed
Alt-M
Company X Plc
(Securities registered)
Unlisted
www.luse.co.zm
Quoted
8
Introducing the LuSE
Alternative Market
“LuSE Alt-M is a market for
Turnover
DA
DIP
Employees
Alt-M
Board
# Shares
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…”
History
www.luse.co.zm
9
Employees & Turnover
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.”
www.luse.co.zm
10
# 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
www.luse.co.zm
11
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
www.luse.co.zm
12
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
www.luse.co.zm
13
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