The JSE this week marked the tenth anniversary of the AltX – the exchange’s board for fast-growing small and medium-sized enterprises.

Since its inception, 106 companies have listed on the AltX, while 22 companies have subsequently migrated to the JSE’s main board. The AltX has a market cap of R15.4-billion, with 60 companies currently listed.

The top three sectors by market cap are industrials, financials and basic materials, which constitute 91% of the overall market cap.

“Ten years on, we believe that AltX is even more relevant today as South Africa desperately needs to grow small businesses to create employment. AltX provides smaller companies [that are] not yet able to list on the main board with a clear growth path and access to capital.

“That a number of companies have grown sufficiently to qualify for migration to the main board is testimony to AltX clearly meeting its objectives,” said AltX client relationship manager Nicole Cheyne.

She added that a listing on AltX offered companies numerous benefits, including access to a large investor pool and positioning the company for greater growth.

A listing provides companies with greater opportunities for profiling and enhanced relations with stakeholders including banks, suppliers, distributers and customers. AltX companies are also better able to retain and attract talent through share options, she pointed out.

Research done by the JSE among AltX executives has indicated that these executives believe that their listing has helped them meet their objectives, whether these be raising capital, improving business processes or distinguishing them from their unlisted peers.

Over 92% of respondents surveyed indicate that companies made acquisitions post their listing, indicating that the AltX is a catalyst for growth.

For investors, the AltX offers investment opportunities in high-growth companies with solid fundamentals. “Investors have the peace of mind that a listing on the AltX goes hand in hand with a requirement that companies comply with all the rules and regulations of the JSE and participate in the high standards of corporate governance,” said Cheyne.