The Botswana Stock Exchange (BSE) has started consulting the public on the listing requirements for a new board which is expected to encourage listing of Small and Micro-Medium Enterprises (SMMEs).
In its bid to make it easier for SMME to list and raise capital via stocks trading, BSE is in the process of establishing a new listing board for companies which cannot list in the main and venture capital board.
In the recent documents shared with the public for comments and additions, the BSE suggested that SME entities seeking to list on Tshipidi SME board should have intangible assets worth P500 000 their assets should be evaluated by an independent professional expert. The stock exchange indicated that the SMME entity should be ready to issue more than 1 million shares for listing and purchase and added that a profit history is not necessary but the applicant should in its analysis of future earnings, provide a profit forecast of 3 years giving assumptions made in arriving at such forecast.
BSE indicated that the SMME entities interested in listing should provide evidence that their directors and senior managers have successful records of achievement in their respective roles. The BSE added that the directors of companies applying to list on the new board must attend an Induction Workshop prior to the listing date of the company but noted that the requirement may be waived by the BSE for those directors who produce evidence of experience in the capital markets industry. “The company should also provide a three-year business plan including an analysis of its prospects based on market segment growth, competitive analysis and market share. The company must also prepare a forecast balance sheet, income statement and cash flow statement in accordance with IFRS,” said BSE Head of Listing and Trading Tsametse Mmolai
The BSE has indicated that the initiative to come up with a new listing board was driven by the fact that majority of SMMEs in this country cannot afford to list on the stock exchange, as they find it difficult to meet listing requirements in the main and venture capital. The stock exchange has promised that the new board will have listing requirements which are easy to comply with and this is expected to encourage SMME to list.