Vunani Corporate Finance, an independent corporate adviser, is a JSE Limited (“JSE”) registered Sponsor and Designated Advisor and has been appointed as such by a number of listed companies. The division has an exceptional team with combined experience of 90 years and is able to initiate and conclude large and complicated corporate actions.
The Vunani Corporate Finance team, with five JSE Approved Executives, has been involved in over 30 AltX listings.
The main objective of the Vunani Corporate Finance team is to create, enhance and unlock value for entrepreneurs and private equity companies.
Vunani Corporate Finance offers an experienced, committed, service-driven team: the members of which are always available and aim to be a “long-term corporate adviser of choice”.
An extensive range of corporate advisory services are provided, including:
- Capital raisings
- Listings on JSE Main Board and AltX
- Mergers, acquisitions and disposals
- BEE transactions
- Management and leveraged buy-outs
- Debt financing
- Private equity
- Fairness opinions
- Valuations
- Restructuring
The JSE Listings Requirements compel all AltX listed companies to appoint a DA and Vunani Corporate Finance fulfils the following roles in this capacity:
- Adviser to the board of directors of any changes to the JSE Listings Requirements and the implications thereof
- Facilitator of all interaction between the company and the JSE
- Ensuring that the company and its directors comply with the JSE Listings Requirements
- Attendance of board and audit committee meetings
- Sign-off on appointment of the financial director
- Preparation of SENS announcements and drafting of circulars and other JSE documentation
Vunani Corporate Finance project manages the entire listing and capital raising process, providing specific advice and assistance in the key areas relating thereto.
Basic guidelines / requirements to be considered before listing on AltX
- Successful management team
- Profit history (although not required by the JSE, this is highly encouraged)
- Capital and reserves in excess of R2 million
- Auditors registered on the JSE Register of Auditors and their Advisers
- Capital raising requirements to ensure sufficient liquidity and free float in the market
Main steps and timing for an AltX listing:
- Corporate restructuring (if applicable) - duration 1 to 2 months
Vunani Corporate Finance advises in conjunction with attorneys, auditors and other advisers on the appropriate corporate restructuring for listing purposes, if required.
- AltX business plan and presentation - duration 1 month
Vunani Corporate Finance assists with the preparation of the company’s business plan and the presentation thereof to the AltX Advisory Committee to obtain the necessary approval to list the company on AltX.
- Prospectus and general advisory service – duration 2 to 4 months
Vunani Corporate Finance advises on the appropriate level of capital, shareholding structures (including BEE shareholding), valuations and pricing for capital raising and listing purposes.
Vunani Corporate Finance assists with the preparation of the Prospectus and liaises with auditors, attorneys and other corporate advisers involved in the listing process.
- Capital raising - duration 1 week
Vunani Corporate Finance prepares for and assists in capital raising road shows, utilising its wide network of institutional and private investors.
A JSE approved Sponsor, Vunani Corporate Finance assists both listed companies and companies seeking to list on the Main Board of the JSE. In terms of the JSE Listings Requirements all Main Board listed companies are required to appoint a Sponsor.
Frequently asked questions about listing on the JSE
1. Why should I consider a listing?
Some of the key reasons to list are to:
- raise capital
- assist with BEE
- facilitate future acquisitions
- increase awareness of the company
- incentivise executives and staff
2. Why list on AltX versus the JSE Main Board?
The main benefits of AltX versus JSE Main Board:
- Less expensive to be listed on AltX
- Fewer Corporate Governance Requirements
- Directors have the opportunity to ‘find their feet’ through Directors Induction Programmes
- Transaction categories in terms of the JSE Listings Requirements for acquisitions are less onerous
3. How much will it cost to list?
The total standard fees range between 1% and 2% of the market capitalisation after the listing. Other costs include fees payable to the:
- JSE (inspection and listing fees)
- Sponsor or DA (documentation and project management fees)
- Auditors and Reporting Accountants
- Attorneys
- Printers
- Transfer secretaries / STRATE
- Independent experts (if required)
- Public relations expert
4. Negatives of being listed
Interim and annual results must be published on SENS within 3 months after the financial period end. All companies at all times are responsible for ongoing communication with investors and Corporate Governance.
5. Advantages/benefits of being listed
- Existing shareholders hold tradable shares
- Currency is available to undertake corporate deals
- Value determined by the market
- Motivation for staff – share incentive scheme
- Facilitates BEE transactions
- Enhances the company’s profile
6. Day to day effect on business activities
Most of the companies which previously operated in a private equity environment with good Corporate Governance and systems and procedures in place have not experienced significant changes. However, a mindset change is often required once a company is listed.
For more information on Vunani Corporate Finance, contact Wessel van der Merwe (wessel@vunanicf.co.za). |
