A newly published rules book has shed light on the requirements for companies to be listed on ESX Ethiopia. Ethiopian Stock Exchange (ESX) is due to be inaugurated later this year. Following are the main pre conditions to be listed at the bourse:
- The company must have been in operation for three years before applying for listing.
- It must have at least 300 shareholders.
- The company must offer equity valued at no less than 15 percent of its capital to list on the ESX main board, while those with more than two billion birr in capital must float a minimum of 10 percent.
- Companies must showcase profitability, with declared profits after tax attributable to shareholders in at least one of the last three financial years preceding the application.
- Financial statements must comply with International Financial Reporting Standards (IFRS) or relevant accounting standards in Ethiopia, along with directives issued by the ECMA.
- Companies with a capital of at least 100 million birr will be able to list on the ESX growth board. These companies must have at least 50 shareholders for at least two years, over which time they must have recorded a minimum 20 percent revenue growth. They are required to offer at least 10 percent of capital upon listing.
Financial experts are of the opinion that it would be difficult for small businesses to meet these requirements. ESX Ethiopia is hoping to list around 50 companies. State owned Ethio Telecom will be listed on ESX to offer 10% of its shares.
ESX wrapped up its own share offering this week after raising more than 1.5 billion birr from 48 investors, including 16 of the country’s commercial banks and 12 insurers. Three foreign investors – the Trade and Development Bank (TDB), FSD Africa, and the Nigeria Exchange Group (NGX) – have also acquired stakes in the upcoming bourse.
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Bale Agarfa
Ee
Galaatoomaa isiin jeechaa !
Deegaarsaa waan naa baarbaachiisuuf birr murtaan Gara akkaawiinttiin osoo naaf siira’ee?
Really this is the only way for our economic growth and development, the world is ahead of us, if we see in the world stock markate if is above 120 Trillion US dollar most of the stock markate are working in USA (>55%). even if we are late we have to work hard make it more transparent.
Really this is the only way for our economic growth and development, the world is ahead of us, if we see in the world stock markate if is above 120 Trillion US dollar most of the stock markate are working in USA (>55%). even if we are late we have to work hard make it more transparent.