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

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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)

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Long Consultative Process

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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

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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

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