Listing on the ESE
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Preparing your company for listing on the ESE

There has never been an opportune time to list on the Eswatini Stock Exchange (ESE) than now. Listing is one of the important ways of gaining access to low-cost financing and prestige. With the help of a well knowledgeable and experienced financial advisor you can prepare your company and be ready for listing in a few months or years. Apart from giving companies access to low-cost funding, listing on a stock exchange often indicates sound management, growth potential and sometimes prestige, among others.

1. Know the listing requirements
Depending on your company’s size, when you qualify, you will list on either the Main Board or the Alternative (SME) Board of the ESE. You should take time to read and understand all the listing requirements for both boards.

2. Hire a good financial advisor
A good financial advisor will save you money and time and will help make your company financially sound and solid with a great potential for growth. It is important to hire an institutional financial advisor as early as possible so that they help you prepare strategically and guide you through the listing process.

3. Get organised and build a good track record
For a successful listing, it is essential to ensure that your company is well organised in terms of its operations, governance structure, record keeping, administrative, financial systems, a strong management with the necessary qualifications, skills and experience. Ensure that your board of directors is independent and constitutes members with the right skills and experience.

4. Have professionals value and audit your company
A thorough valuation of your company will determine its intrinsic value which in turn will determine its IPO price. Hire an independent professional valuer who will produce a report that truly reflects the value of your company. Similarly, have a reputable auditing firm conduct a thorough audit of your company that will uncover areas that need improvement. Normally three years of audited financial are required for listing on the ESE.

5. Strengthen your financial performance and position
One of the first things that potential investors look at when analysing an IPO is the company’s financial reports. Investors want to invest in a company that has been, is, and will be making profits. EBITDA (earnings before interest, tax, depreciation and amortization) is one key financial element investors consider.

6. Make a concise projection of your financial performance
Most investors want to invest in a company that has potential, not only to make profits in future, but also to grow. A well-prepared report of your company’s financial prospects will definitely help a great deal during the IPO. The projections carry more weight when done and certified by a reputable professional.

7. Put your house in order
Clear all outstanding issues your company has with anyone. For instance, ensure that any outstanding issues with law enforcement and regulators are resolved. You do not want negative headlines all over the news during the IPO. Key law enforcers are tax collectors, licensing authorities etc.

8. Market your brand
Advertise, advertise and advertise!!! An IPO is easily successful when the company is well known. Highlight the unique features, services and products of your company.

  Main Board Alternative Board (SME)
Minimum Subscribed Capital No less than 25 million shares in issue Subscribed capital of E5 million Subscribed capital No less than E50,000
Minimum Profit History Audited profit history for the preceding three years Not Required, only projected Cash flows for the next three years
Minimum Free Float 20% 5%
Minimum Number of Public Shareholders At least 20 At least 10
Security N/A N/A
The Memorandum and Articles of Association of the company must comply with the Eswatini Stock Exchange Listings Requirements and the Companies Act