asea newsletter 2013 february edition.pdf

7/30/2019 ASEA Newsletter 2013 February Edition.pdf

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Issue 1 | February | 2013

AFRICAN

2013

Growth in AfricanCapital Markets

A Newsletter 0fAFRICANEXCHANGESEXCHANGES


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2 I 2013IIssue 1ASEA

CONTENTS

All rights reserved. Reproduction in whole or in part without written permission of the editor is strictly prohibited. The greatest care

has been taken in compiling this Newsletter publication. However, no responsibility can be accepted by the publishers or compilers for

accuracy of the information presented.

1. WELCOME NOTE

2. ASEA BRIEF

3 TRIBUTE TO: JONATHAN AUERBACH

4. INTERVIEW: I) PRESIDENT OF ASEA, MR SUNIL BENIMADHU

II) MARY MNIWASA ACTING CHIEF EXECUTIVE, DAR-ES-SALAAM STOCK EXCHANGE

5. FOCUS ON NEW MEMBER: RWANDA STOCK EXCHANGE

4. MAIN STORY: I) AFRICAN STOCK EXCHANGES GROWTH BOARDS BY TOM MINNEY

II) NAIROBI SECURITIES EXCHANGE

III) INTERVIEW WITH EVE GADZIKWA OF ZIMBABWE STOCK EXCHANGE

6. EXPERT ARTICLES: I) AFRICAN EXCHANGES BY HERBIE SKEETE

II) EFFECTIVE ROADSHOWS: FROM PLANNING TO RESULTS AND BACK AGAIN

BY ANNE GUIMARD PRESIDENT FINEO

7. MEMBERS EXCHANGE NEWS

9. HALF YEARLY STATISTICS: JULY - DECEMBER 2012


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5 13

Interview with ASEAPresident, Mr SunilBenimadhu

Tribute toJonathan Auerbach


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There are some encounters in lie that tend to have an everlasting impact on

the lives o people who are ortunate enough to make them. I would certainlyinclude my encounter with Jonathan Auerbach on a sunny Friday aternoonin October 2005 at the Stock Exchange o Mauritius among the meaningulencounters o my lie. Such was the charisma, presence and stature o the manthat I recall each and every single moment o the rst meeting i ever had withhim.

Other meetings ollowed over the years and I ound in Jonathan Auerbach avisionary and a great supporter o Arica and o Arican stock markets. He hadseen Aricas rising years beore the pundits who dictate the headlines o someo the well-established international magazines had tuned up to Aricas promise.He was selling Arican stocks and Aricas promising uture to his clients in NewYork when others were projecting amine, war, internal strie as the quasi-natural

and inescapable lot o the Arican people. His proound love o and attachmentto the rising continent are echoed by the numerous Arican ags and otherreminiscences o his company visits in Arica that cover the tables and walls othe meeting rooms o his oce in New York.

News about Jonathans untimely demise was received as a shock wave at theannual agship conerence o ASEA in Cairo in December last year. The absenceo a man who had, more than anyone else, championed the cause o AricanStock Exchanges and o Arican stock markets at the international level wassorely elt. We all missed his insightul comments, his analytical prowess and hiscontrarian views on some undamental issues concerning the uture o Aricanstock markets.

Over and above the enormous contribution o Jonathan to the cause o Aricanstock markets, I think we will all miss the prooundly human touch o this specialman, a beautiul mind. A man who would illuminate any gathering with hisintelligence, natural charisma, humility and simplicity.

Sunil Benimadhu

January 29, 2013

TRIBUTE TO JONATHAN AUERBACH


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President: Mr. Sunil Benimadhu, Chie Executive, StockExchange o Mauritius

Secretary: Ms. Silvana WanjiruWebsite : www.aricansea.orgContact : [email protected]

Summary o Highlights

1. The Association launched the FTSE ASEA Pan AricanIndex Series on December 3, 2012 in Cairo, Egypt.

2. On December 2 2012, the Arican Securities ExchangesAssociation (ASEA) held its 24th Executive CommitteeMeeting and 16th Annual General Meeting at the FourSeasons, Nile Plaza, Cairo, Egypt.

3. The ocials o the Executive Committee o the AricanSecurities Exchanges Association are as ollows:-

President: Mr. Sunil Benimadhu, Chie Executive:Stock Exchange o Mauritius;

Vice President: Mr. Oscar Onyema, Chie Executive:The Nigerian Stock Exchange;Mr. Geof Rothschild, Head: Government andInternational Afairs: JSE Ltd.;

Mr. Joseph S. Kitamirike: Chie Executive Ocer:Uganda Securities Exchange;

Dr. Mohammed Omran, Executive Chairman: TheEgyptian Exchange;

Mr. Peter Mwangi, Chie Executive: Nairobi SecuritiesExchange;

Mr. Ekow Aedzie, Deputy Managing Director: GhanaStock Exchange; and

Mr. Karim Hajji, Chie Executive: Bourse de Casablanca.

When was the association created?

The Arican Securities Exchanges Association (ASEA)was registered in Nairobi on 13th November 1993 withthe object o, inter alia, establishing an association orsystematic mutual cooperation, exchange o inormation,materials and persons, mutual assistance and joint programs

between the members. The membership o the associationis open to any Stock Exchange or nascent Stock Exchangelocated in the Arican region. The Association has beenholding annual conerences, which are hosted by diferentmembers each year where issues relevant to the growth othe regional capital markets are addressed.

Where is the secretariat located?

ASEA SecretariatNairobi Securities ExchangeNation Centre, First Floor, Kimathi Street,PO Box 43633, Nairobi 00100,

Tel: +254 20 2831000 | Fax: +254 20 224200

www.aricansea.orgEmail: [email protected]

What is the main role o the association?

1. To establish an association or systematic mutual

cooperation, exchange o inormation, materials andpersons, mutual assistance and joint programmesbetween the members;

2. To promote the establishment o securities exchangesin all Arican countries;

3. To promote the development o common standards otraining and proessionalism among members o theAssociation and other market players;

4. To promote common standards o issuing, listing,trading and settlement o securities;

5. To acilitate the development and promotion oproducts and services or Aricas capital markets;

6. To assist members in the promotion and developmento the range o services associated with the capitalmarkets;

7. To develop and promote a data bank and inormationsystem or the mutual benet o members;

8. To study, and research on matters o mutual interest tomembers;

9. To disseminate inormation; produce materials in allmedia, hold conerences, seminars and exhibitions,and conduct other public education activities relevantto the interests o members;

10. To ensure that the views and interests o the Associationare promoted in the appropriate worldwide ora;

Members o the Association

Full Members1. Bolsa de Valores de Cabo Verde2. Bolsa de Valores de Moambique3. Botswana Stock Exchange4. Bourse de Casablanca5. Bourse de Tunis6. Bourse Rgionale des Valeurs Mobilires de lArique de

lOuest7. Dar-es-Salaam Stock Exchange8. Douala Stock Exchange

9. The Egyptian Exchange10. Ghana Stock Exchange11. Johannesburg Stock Exchange12. Khartoum Stock Exchange13. Libyan Stock Market14. Lusaka Stock Exchange15. Namibian Stock Exchange16. Nairobi Securities Exchange17. Nigerian Stock Exchange18. Malawi Stock Exchange19. Uganda Securities Exchange20. Stock Exchange o Mauritius21. Zimbabwe Stock Exchange22. Rwanda Stock Exchange

ASEA BRIEF


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ASEA BRIEF

Observer Member1.Central Securities Clearing System Ltd. (Nigeria)

Aliate Member1.South Asian Federation o Exchanges (SAFE)

The ull members represent twenty nine (29) Arican states - Benin, Botswana,Burkina Faso, Cape Verde, Cte d'Ivoire, Egypt, Ghana, Guine Bissau, Kenya, Libya,Mali, Malawi, Mauritius, Morocco, Mozambique, Namibia, Niger, Nigeria, Rwanda,Sngal, South Arica, Sudan, Swaziland, Tanzania, Togo, Tunisia, Uganda, Zambia,and Zimbabwe.

The Arican states which the ASEA members represent belong to the ollowingregional economic integrations within Arica alone:

1. Economic and Monetary Community o Central Arica (CEMAC);2. Intergovernmental Authority on Development (IGAD);3. Southern Arican Development Community (SADC)/Southern Arican

Customs Union (SACU);4. West Arican Economic and Monetary Union (UEMOA);5. Community o Sahel-Saharan States (CEN-SAD);6. East Arican Community (EAC);7. Economic Community o Central Arican States (ECCAS);8. Economic Community o West Arican States (ECOWAS) and;9. Middle East Free Trade Area (MEFTA);

7.ConerencesThe Egyptian Exchange hosted the sixteenth (16th) Annual Conerence o the

Arican Securities Exchanges Association (ASEA) which took place at the FourSeasons, Nile Plaza, Cairo, Egypt on December 2, 2012.

8.Upcoming EventsThe seventeenth (17th) ASEA AGM and Conerence will be hosted BourseRgionale des Valeurs Mobilires de lArique de lOuest in Abidjan, Cote d Ivoire.

*To be conrmed

2013 Initiatives of the Association

1.Partnership with the Arican Development Bank (ADB)

The President on behal o the Association will continue to pursue discussions withthe Arican Development Bank (ADB) on key priority areas or the Association.

2.ASEA Website

The Association will work with I-Net Bridge to develop a new and revamped

Month Meeting Host / Place

April 2013 ASEA ExecutiveCommittee Meeting

Ghana Stock Exchange,Accra

September 2013 Joint Capacity BuildingProgramme

Johannesburg StockExchange, South Arica

November/December2013*

ASEA Annual Generalmeeting & Flagship

Conerence

Bourse Rgionale desValeurs Mobilires,

Abidjan, Cote d Ivoire

The Egyptian Exchangehosted the sixteenth(16th) AnnualConerence o theArican SecuritiesExchanges Association(ASEA) which took place

at the Four Seasons, NilePlaza, Cairo, Egypt onDecember 2, 2012


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website or ASEA this year.3.ASEA Newsletter

The Association will continue to publish a newsletter or the Associationquarterly. The Newsletter constitutes an excellent medium or ASEA to marketMember initiatives and markets.

4.Two Year Plan

The ASEA Secretariat will develop a strategic plan and plan or the uture o theAssociation. The Secretariat will also work on ways to increase revenue o theAssociation to ensure sustainability.

5.Amendments to the Memorandum & Articles o Association

The Annual General Meeting approved amendments to the Memorandum &Articles o Association as ollows;

Denition o Full Member

The General Meeting resolved to amend the Memorandum and Articles tobroaden the denition o a Full Member to recognize the importance o entitiesthat trade alternative nancial securities such as derivatives and commodities.Article 3 c (i) o the Articles o Association will now read - Full Membership isopen a recognized, regulated and supervised securities exchange, derivative andcommodities exchange operating in Arica.

Denition o Associate Member

The General Meeting also resolved to amend the Memorandum and Articles toadmit as Associate Members, entities operating in the capital markets industry

in Arica or elsewhere. Now the ollowing institutions rom the nancial industrycan apply or ASEA Associate Membership:-

Clearing Houses; Central Depositories; Clearing and Settlement Institutions; Sel Regulatory Organizations in the nancial industry; Associations o market intermediaries in the nancial industry; Other Exchange Associations.

6.THE ASEA RULES

The General Meeting unanimously adopted the ASEA Rules.The Rules cover theollowing ASEA Procedures:-

Filling o casual vacancies on the Executive Committee; The procedure or removal and automatic disqualication o the

representative o a Member at the Executive Committee; The acceptable seniority o both the representative and alternate o a

Member at the Member organization; and Broadening the membership o ASEA to include organizations in the nancial

services sector, with whom collaboration will urther the objectives o ASEA.

The General Meetingresolved to amend theMemorandum andArticles to broadenthe denition o a FullMember to recognize theimportance o entities

that trade alternativenancial securitiessuch as derivatives andcommodities

ASEA BRIEF


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Arica, particularly East Arica is widelyregarded as the origin o mankind.

Dating back some 200,000 yearsago the earliest example o Homosapiens or modern humans wererst discovered in Ethiopia. So in thebeginning there was Arica.

A quick search on the internet orstatistics about Arica yields someinteresting results. Arica is the worldssecond largest and second mostpopulous continent. Rich in naturalresources, Arica is home to more than1 billion people. A recent IMF reportpredicts that o the 20 countries withthe highest Compounded AnnualGrowth Rate (CAGR) in the next veyears, 10 are to be ound in Arica.Perhaps Arica is a classic growth storythen?

O course Arica is not without its ownchallenges. The continent needs tocontinue tackling issues relating toeducation, malnutrition, the supplyo clean water and sanitation. It is also

the case that Arica has the meansto address these challenges. Aricais unlikely to end the 21st centuryhaving exported the same level o rawmaterials in comparison with the lasthundred years. One might also arguethat the U.S. ederal governmenttrying to reduce the budget capor the E.U. reorming the commonagricultural policy are no less o achallenge. So or Arica, perhaps oneo the main issues is as much about

perception as reality.

Developed markets continue tobe hampered by sluggish growthorcing investors globally to searchor alternative means o improvedreturns and portolio diversication.

The worlds largest asset manager,BlackRock recently commented that

they are currently more positive onrontier* than emerging markets.

One issue that persists is the lacko eciency in rontier markets.Regulations, liquidity, access to reliableand persistent data are justiableconcerns. In order to address thesepoints FTSE partnered with ASEA tolaunch the FTSE ASEA Pan Arica Index(Ex. South Arica) in December 2012.

The index is screened using FTSEsworld renowned standards but alsotakes into consideration the liquidityo each constituent relative to that oits home stock market.

This unique index enables ASEA toaddress one o its primary goals;to acilitate the development andpromotion o products and servicesin Aricas capital markets. It is also agoal that the index be adopted asa perormance benchmark by thegrowing number o Arican investors.FTSE has been providing solutions toArica investors or 10 years and we

are delighted to have partnered withASEA on this initiative.

*O the 19 countries or possibleinclusion in the FTSE ASEA Pan AricaIndex, 17 are currently ranked asFrontier by the FTSE Global EquityIndex Series Country Classication. Formore inormation visit http://www.tse.com/Indices/Country_Classication

Highlighting thepotential o Aricasrontier marketsJonathan CooperManaging Director:FTSE Middle Eastand Arica

FTSE ASEA PAN AFRICAN INDEX SERIES


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3-Year Per ormance - Tota Return USD

80

90

100

110

120

130

140

Jan-2010 Jul-2010 Jan-2011 Jul-2011 Jan-2012 Jul-2012 Jan-2013

FT SE ASEA PanAfricaIndex ex South Africa FT SE Secondary Emerging FT SE Frontier 50

(USD)

Performance and Volatility - Total Return (USD)

Index (USD) Return % Return pa %* Volatility %**

3M 6M YTD 12M

3YR

5YR 3YR 5YR 1YR 3YR 5YR

FTSE ASEA Pan Africa Index ex SouthAfrica

7.8 19.2 5.9 25.1 17.7 - 5.6 - 7.3 10.4 -

FTSE Secondary Emerging 10.9 18.7 5.0 12.2 26.7 10.3 8.2 2.0 14.3 20.7 29.7

FTSE Frontier 50 14.9 24.3 7.6 24.1 11.2 -37.0 3.6 -8.8 7.2 12.5 28.1

* Returns are annualised

** Volatility 1YR based on 12 months daily data. 3YR based on weekly data (Wednesday to Wednesday). 5YR based on monthly data

Year-on-Year Performance - Total Return (USD)

Index % 2008 2009 2010 2011 2012

FTSE ASEA Pan Africa Index exSouth Africa - - 22.5 -22.4 23.0

FTSE Secondary Emerging -57.2 80.8 20.2 -19.6 20.5

FTSE Frontier 50 -49.3 7.1 11.2 -20.6 17.3

FTSE ASEA PAN AFRICA INDEX EX SOUTH AFRICAThe FTSE ASEA Pan Arica Index Series is designed as a regional index representingthe Stock Exchanges that make up the Arican Securities Exchanges Association(ASEA). The index contains no more than 30 constituents per country and willhave a maximum country weight o 20% at review. The index ollows FTSE indexstandards.

FEATURES

CoverageA maximum o 30 constituentsper country drawn rom eligiblecountries within the Arican SecuritiesExchanges Association (ASEA).

Objective

The index is designed or the creationo index tracking unds, derivativesand as a perormance benchmark.

Investability

Stocks are selected and weighted to

ensure that the index is investable

Capping

Countries are capped at 20% at thetime o semi-annual review.

Liquidity

Stocks are screened to ensure that theindex is tradable.

Transparency

Freely available index rules are

overseen by an independentcommittee o leading marketproessionals.

Availability

The index is calculated based onprice and total return methodologies,available end-oday.

Industry Classication Benchmark

Index constituents are categorized inaccordance with the IndustryClassication Benchmark (ICB), theglobal standard or industry sectoranalysis.



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INFORMATION

Index UniverseStocks incorporated and listed in aneligible ASEA country

Index Launch

3 December 2012

Base Date

31 August 2012

Base Value

1000

Investability ScreenFree-oat adjusted and liquidityscreened

Index Calculation

End-o-day index available

End-o-Day Distribution

Via FTP and email

Currency

USD, GBP, EUR, JPY

Review Dates

Semi-annually in June and December

History

31 August 2009

Index Rules and Vendor Codes

Available at www.tse.com

Top 10 Constituents

Constituent Country ICB Sector Net MCap (USDm) Wgt %

Orascom Construction Egypt Construction & Materials 2,442 3.71

Guarantee Trust Bank PLC Nigeria Banks 2,228 3.39

Nestle Foods Nigeria PLC Nigeria Food Producers 2,022 3.08

Zenith Bank Plc Nigeria Banks 2,003 3.05

Commercial International Bank Egypt Banks 1,925 2.93

Nigerian Breweries Nigeria Beverages 1,866 2.84

FBN Holdings PLC Nigeria Banks 1,844 2.80

Attijariwafa Bank Morocco Banks 1,675 2.55

Maroc Telecom Morocco Mobile Telecommunications 1,654 2.52

Mauritius Commercial Bank Ltd Mauritius Banks 1,472 2.24

Totals 19,132 29.10

ICB Industry Breakdown

FTSE ASEA Pan Africa Index ex SouthAfrica

FTSE Secondary Emerging

ICB Code ICB Industry No. of Cons

Net MCap (USDm) Wgt % No. of Cons

Ne t MCap (USDm ) Wgt %

0001 Oil & Gas 9 1,094 1.66 30 306,145 19.27

1000 Basic Materials 12 1,891 2.88 54 123,993 7.81

2000 Industrials 29 7,202 10.95 81 140,436 8.84

3000 Consumer Goods 50 14,674 22.32 42 109,211 6.88

4000 Health Care 3 391 0.59 16 27,994 1.76

5000 Consumer Services 22 1,836 2.79 21 59,628 3.75

6000 Telecommunications 9 6,365 9.68 20 140,574 8.85

7000 Utilities 5 632 0.96 38 69,038 4.35

8000 Financials 97 31,671 48.16 94 552,905 34.81

9000 Technology - - - 11 58,443 3.68

Totals 236 65,756 100.00 407 1,588,367 100.00

Country Breakdown

Country No. of Cons Net MCap (USDm) Wgt %

Botswana 9 2,069 3.15

Egypt 30 10,915 16.60

Ghana 10 1,837 2.79

Ivory Coast 15 3,746 5.70

Kenya 25 7,062 10.74

Mauritius 30 4,364 6.64

Morocco 30 11,366 17.29

Nigeria 32 17,076 25.97

Tunisia 17 3,001 4.56

Uganda 3 527 0.80

United Republic Of Tanzania 3 470 0.72

Zambia 6 520 0.79

Zimbabwe 26 2,801 4.26

Totals 236 65,756 100.00



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About ASEA

ASEA is a non-protcompany limited byguarantee that wasounded in Kenya on the13th o November 1993

Index Characteristics Attributes FTSE ASEA Pan Africa Index ex

South Africa

Number of constituents 236

Net MCap (USDm) 65,756

Dividend Yield % 3.85

Constituent Sizes (Net MCap USDm)

Average 279

Largest 2,442

Smallest 3

Median 125

Weight of Largest Constituent (%) 3.71

Top 10 Holdings (% Index MCap) 29.10

About ASEAASEA is a non-prot company limited by guarantee that was ounded in Kenyaon the 13th o November 1993, according to Chapter 486 o the Laws o Kenya,with the aim o establishing systematic mutual cooperation and exchange oinormation among its members. The association started with Nairobi StockExchange as the rst member in 1993, ollowed by Mauritius, Uganda and Dar-es-Salam Stock Exchanges in the nineties. The association is currently representedby 22 exchanges in 27 Arican countries.



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Interview with thePresident o ASEA &Chie Executive StockExchange o Mauritius

1.You have just been re-elected

the President o Arican SecuritiesExchanges Association, please tell usabout your objectives or ASEA?

The Arican Securities ExchangesAssociation (ASEA) has raised itsprole in recent years, growingin number and succeeding inattracting a ew new Exchanges to

join the Association. ASEA has alsosuccessully implemented a numbero key initiatives to raise the visibility o

Arican Exchanges at the internationallevel and has actively participated withother institutions to support eventslinked to the promotion o AricanStock markets.Looking orward, as the interest onArica as an attractive investmentdestination gathers urthermomentum, it would be interestingor ASEA, as the window o StockExchanges in Arica, to reect on avalue-enhancing action plan that

can strengthen the role o AricanStock Exchanges in harnessing Aricasgrowth opportunities. ASEA canpotentially urther raise the growinginterest on Arica by pursuing theollowing initiatives:

1. ASEA needs to emerge over thenext two years as the rst point ocontact or investors wishing toobtain rst-hand inormation onArican stock markets. ASEA shouldstrive to enhance the visibility oArican Stock Exchanges at theinternational level.

2. .ASEA should revamp its websiteto give up-to-date inormation toinvestors who want to understandthe perormance o Arican marketsand learn more about the changesand improvements underway inthe diferent Arican Exchanges. Theweb site underwent a rst phaseo change two years ago, but I

think the time has come to give it asecond impetus.

3. ASEA should continue workingclosely with other institutionsthat are closely involved with thedevelopment o Arica and oArican countries, institutions likethe Arican Development Bank, theArican Union and others. There isalso a strong need to get AricanGovernments to understand thevital role that Stock Exchangesplay in the transormation anddemocratization o economies.

4. The need o setting up a PermanentSecretariat similar to that o theWorld Federation o Exchanges(WFE) to drive ASEAs agendaand scale up ASEAs activities ina meaningul way needs to bediscussed, even i it is still too early orASEA to embark on this journey. Theexperience o other similar regionalassociations clearly underscore theimportance o having a permanentstaf who is entirely devoted to the

activities o the Association andwho is responsible o implementingthe plan/vision set by the ExecutiveCommittee o ASEA.

5. There is a need to attract moremembers to the Association, whileensuring a greater commitment oexisting members to the objectiveso the Association.

2.ASEA holds conerences every year.

Please describe the last conerencehosted by Cairo, Egypt and whatdelegates may expect in the comingyear?

On behal o my colleagues romASEA, I would like to convey my thanksand appreciation to the excellentteam o the Egyptian Exchange orthe organization o the 16th ASEA

Mr Sunil Benimadhu

INTERVIEW


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INTERVIEW

Conerence. The unique touch ohospitality coupled with the insightul,

orward looking and highly relevantpanel discussions greatly contributedto the success o the Event. Further,the Event attracted a large mediacoverage, with many newspapers,magazines, radio and TV channels romthe continent and abroad, afordingthe ASEA Conerence a high prole.

The post-conerence entertainmentwas also great and emphasized therich cultural heritage o the Egyptiannation.

Following the 2011 event hostedby Casablanca Stock Exchange inMorocco and the 2012 Event in Egypt,the standard has now taken a world-class dimension and is considered bymost participants as an annual eventworth attending.

We are already looking orward to the2013 17th ASEA Conerence, to behosted by BRVM and we hope thatthis orthcoming event will attract

a growing number o internationalinstitutional investors to attend. Itwould also be great i more issuerscould participate in the conerenceto share their experience and tounderscore how Arican Exchangeshave helped them create value ortheir shareholders. Internationalinvestors will nd in the ASEAconerence a unique opportunity tobetter understand the dynamics ochange currently characterizing the

Arican Stock Exchange ecosystemand interact with key Arican playersto better understand the attractiveinvestment opportunities that manyArican Stock exchanges ofer.

3.Comment on the perormance oASEA Stock Exchanges in the past year?2012 has been a very good year ormany Arican Stock Exchanges, withmany o them registering high doubledigit growth o their key market

indices. These strong perormancesare a reection o the solid macro

economic growth experienced bymany Arican economies, double-digit earnings growth registered bysome listed companies and a shit ininternational portolio allocation inavour o Arican Stock Exchanges asinternational investors turn to highgrowth rontier markets. The outlookor Arican Stock exchanges lookspromising. We still need to work onsome bottlenecks , such as liquidity,costs o trading, and improve thequality o reporting in certain cases,but it is clear that the next decadewill be Aricas decade and I have nodoubt that Arican Stock Exchangesstand to gain rom Aricas surge.

4.The Stock Exchange o Mauritiusjust won the Most innovative StockExchange o the Year or the secondyear running. Tell us what it takes?

This Award in the Most Innovative

Stock Exchange category was givenon the basis o a number o criteria,including, amongst others, the use otechnology to enhance investor accessto real-time stockmarket inormation,compliance o the Exchangesregulatory and operational set-upwith international standards, initiativesimplemented by the Exchange toembrace new areas o developmentand existing as well as uture initiativesto improve the experience o investors

using the Exchange.

The SEM, with the support o its sisterCompany, the CDS, has during the lastthree years implemented a numbero initiatives to internationalise itsplatorm and emerge over time asan attractive listing and trading andsettlement platorm or global undsand Global Business companies. Wehave, in this context.come orwardwith a multi-currency inrastructure

On behal o mycolleagues rom ASEA, Iwould like to convey mythanks and appreciationto the excellent team othe Egyptian Exchangeor the organization o

the 16th ASEA Conerence


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INTERVIEW

that would allow an issuer to list andtrade its securities in USD, EURO and

GBP. We have also implemented anumber o initiatives to increase ourvisibility at the international level.

5.What is the Stock Exchange oMauritius currently doing to attractinvestment ows?

SEM launched a new web site last yearwhich retains the useul eatures o theprevious website but adds a whole

set o new eatures which aims atenhancing the experience o local andoreign investors who are investing onour Exchange and attracting moreinvestment ows to our market.

A salient eature o the new web siteis the charting o year-to-date andhistorical pricing data o SEM indicesand all listed stocks over diferenttime-scales: 1-month, 3-month, 1-year,3-year, 5-year and since inception.Similarly, investors can also research

snapshot details on each and everylisted company covering both marketscurrently operated by SEM.With a view to attracting moreinvestment ows to our market, SEMlaunched some time back a brochurerecently entitled: Listing on the SEM:the road to value-creation, growthand democratisation to highlight theattractive returns that some listedcompanies have generated or bothlarge and small shareholders since

their listing on the SEM markets, andthe role that the Stock Exchange oMauritius has played in democratizing

the economy by enabling thousandso retails Mauritian investors obtain a

stake in some o the most successulcompanies in Mauritius.We have also tried to reach out tointernational investors through theinternational data vendors. SEMis today connected live to a topbracket o global vendors , such as

Thompson Reuters, Interactive Data,Financial Times, Factset, Bloomberg,enabling investors worldwide toollow our market on a real-time basis.

The coverage o SEMs data by globaldata vendors is a powerul marketingmedium to enhance SEMs visibilityinternationally and put the Exchangeon the radar screen o a widerspectrum o institutional investors .Some o SEMs listed companies are

included in rontier market indicesdeveloped by Standard & Poors,Morgan Stanley, Dow Jones and FTSE.

6.What is the outlook or 2013 in the

capital market space in Arica?As highlighted in a previousquestion, I think that 2013 will bea positive year or capital marketsin Arica. Stock Exchanges are wellpoised to benet rom the increasedinternational portolio ows to ourmarket. We should also see an increasein investments rom local retailand institutional investors. Aricaneconomies are expected to grow at anaverage rate o 5% + and this growth

will not only be resource based, butwill include a number o emergingsectors o activity.

A salient eature othe new web site is thecharting o year-to-dateand historical pricingdata o SEM indices andall listed stocks overdierent time-scales


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A brie historical background o the Dar-Es-

Salaam Stock Exchange (DSE)

The Dar es Salaam Stock Exchange(DSE) was incorporated in 1996under the Companies Act, 2002 asa company limited by guaranteewithout a share capital. It becameoperational in April, 1998 when therst two companies (TOL and TBL)were respectively listed in April andSeptember o the same year.

The DSE is a non-prot making bodycreated to acilitate the Governmentimplementation o the TanzanianGovernments economic reorms andencourage wider ownership o publicresources.

The DSE membership consists oLicensed Dealing Members (LDMs)and Associate Members. The LDMsare members that are allowed toaccess DSEs trading acilities totrade on securities on behal o theirinvestors as agents or to on theirown behal as principals. Associate

members are all non-LDM members(natural and legal) who have interestin the development o capital marketsin Tanzania including the ollowing;listed companies, companies witha potential or listing, institutionalinvestors, proessional associations, aswell as individuals.

The DSE governance structure is builton three pillars. The apex pillar is theGeneral Meeting o the members

o the company. The second pillar(below the General Meeting) is theGoverning Council o the DSE. All thegoverning unctions o the DSE arevested into the Council. The Council isaccountable to the General Meeting.

The third pillar is Management o theDSE which is vested with powers torun the day to day activities o theDSE. Management is answerable tothe Governing Council.

The pace to list on the exchange

unortunately became slower thanexpected in subsequent years thus

by the end o 2006 (10 years ater DSEwas incorporated), the number o localcompanies listed on the exchange wasless than 10. At the same time however,due in part to eforts carried out toreconstitute East Arica Economies,three Kenyan companies (KA, EABL,and JHL) were cross-listed on theexchange, making DSE a regionalplayer in the securities market.

Currently, there are 11 local and 6international companies listed on theDSE. There are also 5 Corporate Bondsand over hundred Government Bondslisted on the exchange. During thesecond hal o 2012; the total valuetraded was USD 183.5 Million whiletrading volume was USD 56 Million.By the end o 2012, the DSE marketcapitalization was valued at USD 8.4Billion.

2.The uture o DSE

The main ocus o DSE in the next

5 years is to become protable andless dependent on Governments(o Tanzania) nancial assistance.Currently, the Government o Tanzaniahelps in part to support DSEsdevelopment and IT expenditures. Inthe uture, DSE is looking or ways tosel-nance its budget. In the process,DSE is thereore looking or morerevenues sources by introducing newee generating services.

The objective o the Dar es SalaamStock Exchange (DSE)s 5-yearsStrategic Plan thereore is to ensurethat the exchange ocuses on anachievable scope and number omilestone activities and resources thatwill move the exchange operations toa competitive and sustainable positionin the next 5 years. One o the ultimategoals is to have the exchange ready(protable and sel-sustaining) or ademutualization in the next ve years.

Interview with

Mary Mniwasa ActingChie Executive Dar-Es-Salaam Stock Exchange

DAR-ES-SALAAM STOCK EXCHANGE


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3.Underlying actors behind Tanzanias ast

growing economy

Recent developments in raw minerals,oil and gas exploration and discoveriesin Tanzania have changed or thebetter the overall outlook o Tanzaniasalready ast growing economy. Thecountry is now set to become oneo the major natural gas producers inthe region while also maintaining itsposition as the top producer o goldand diamond in the region. These byar, can be said to be the underlyingactors behind the countrys currenteconomic growth.

The nancial and communicationsectors in the country have also beenimpressively growing in recent years.Currently there are more than 40healthy commercial banks (comparedto 1 twenty years ago) in the country.

The nancial sector is growing andaccordingly taking its respective partin supporting the countrys wideningand growing economic activities. Thenumber o mobile phone users in the

country has also substantially grownin the last ve years, ranking the threemajor mobile phone providers in thetop 20 overall in the country (in termso revenue and prot generation).

DSE is poised to take on board (listing)companies rom all the growingsectors i.e., mining, telecom andconstruction industry.

4.Strategic Initiatives at DSE

To support DSEs overall goal obecoming protable and sel-sustaining in ve years, and, tosupport the DSEs vision o being asustainable exchange that is an engineo economic growth or Tanzania,the DSE has embarked on doing theollowing, among others:

(i)Strengthen the DSEs sel-regulatory capacity to ensure that

market integrity is saeguarded;

(ii)Operationalize the EnterpriseGrowth Market (EGM) segment toallow SMEs and start-up companiesto raise long term capital or theirbusinesses;

(iii)Strengthen market structuresin order to guarantee businesscontinuity, reduce securitiessettlement risks and providecountrywide access to DSE tradingacilities. This will involve having inplace a Disaster Recovery Site (DRS),connecting the Central DepositorySystem (CDS) to National PaymentSystem (NPS) and installing WANinrastructure;

(iv)Conduct wide public awarenesscampaigns to create awareness onthe importance o the DSE to thecountrys economy;

(v)Accommodate new productsin the market; developmentsin the economy and growingsophistication on part o marketintermediaries and investors isexpected to call or innovationand providing platorms or newproducts including municipal andinrastructure bonds.(vi) Ingrain a sel-reliant,commercial business culture in theexchange;

(vii)Increase the number o listedcompany by at least 5 majorcompanies;

(viii)Expand the range o ee-generating products and services;

(ix)Raise the prole o the DSE in thecountry and abroad; and

(x)Improve the risk management o

DSE is poised to takeon board (listing)companies rom all thegrowing sectors i.e.,mining, telecom andconstruction industry


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the DSE and the securities market inTanzania.

5.What is being done by DSE to increase

liquidity in the Market

Yes, illiquid is the major problemacing the exchange right now. Someo the causes are structural (buyand hold trading strategies by somemajor traders, lack o or poor tradingknowledge, slow movement o prices,less supply, etc.) and will need time totackle. The DSEs plan is to continuewith a serious push and engagementcampaign with securities marketstakeholders to change this. Part othe plan involves a serious push to listmore companies on the exchange,expansion o products, training andmarketing campaigns, and a pushto expand and open the market tocountry neighbors.

Specically, as part o the overallnancial deepening campaignchampioned by Tanzanias CentralBank, the DSE is planning to engage

in a nation-wide educational andpromotional campaign to sensitiveand educate the public aboutsecurities and capital raising activitiesand opportunities in the country. Withthe ultimate goal o increasing bankingand the use o nancial activities levelsin the country, the DSEs overall goalis to increase the number o currentinvestors rom 200,000 to over amillion in the next ve years.

6. Is DSE keen on regional integration?Yes, DSE is very keen on regionalintegration. We see this as anopportunity to create a globalplatorm or recognition, trading, andconsequently, growth. DSE is currentlyan exchange member o EASEA and

COSSE as part o the overall strategicplan o becoming an active trading

partner in the two regions. DSE is alsoan exchange member o ASEA withthe ultimate goal o becoming anactive trading partner in the continentin the near uture.We are seriously looking or ways topartner with developed exchangesin Arica to improve trading anddata sharing activities to ultimatelyimprove our services and those o ourpartners. We are opening up ourselvesto sharing our experiences with otherexchanges while also gaining thesame rom them.

7.Where do you see DSE in the next ve years

In the next ve years, I see theexchange that is protable and sel-sustaining. With the current positivemacroeconomic outlook (substantialgrowth o service, nancial, miningand communication industries) othe countrys economy, I oreseean exchange that is very active,competitive, and one o the players

in the countrys economic activities.I also oresee an additional o at least5 major companies listed on theexchange in the next ve years.

I am encouraged by the cooperationwe have been getting rom theGovernment, Regulator, the Banko Tanzania and other stakeholders/development partners (like the WorldBank) recently helping our campaignor an active, visible and liquid

securities exchange in Tanzania. Ibelieve that the time is ripe or the Dares Salaam Stock Exchange to take ofand expand substantially. The next veyears will prove that the time we havebeen waiting or has nally arrived.

I am encouraged by thecooperation we havebeen getting rom theGovernment, Regulator,the Bank o Tanzaniaand other stakeholders/development partners

(like the World Bank)recently helping ourcampaign or an active,visible and liquidsecurities exchange inTanzania



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When was the Rwanda Stock Exchange ormed? Brie Background

The Rwanda Stock Exchange Limited was incorporated on 7th October 2005

with the objective o carrying out stock market operations. The Stock Exchangewas demutualised rom the start as it was registered as a company limited byshares. The Company was ocially launched on 31st January 2011.

Trading Hours & No o trading days per week:

Trading on RSE is conducted through a dual process: An open outcry trading session is conducted at the trading oor during

ormal trading hours (9:00 a.m. 12:00 p.m.) ve days a week. Members trade through an Over the Counter market (OTC) where a member

is allowed to buy or sell directly to clients in their oces. Equally membersare allowed to transact with other members either ace to ace or throughthe telephone ater the ormal trading hours o the normal working days. AllOTC transactions have to be reported to RSE not later than 1 hour ater thetransaction(s), and shall be reported in the next ormal trading session orpurposes o settlement.

How many staf do you have?

Rwanda Stock Exchange is run by a Board o Directors consisting o 7 Membersand currently employs 4 ull time employees.

What are your achievements so ar?

There are 2 domestic companies listed and 2 cross listed companies on the RSE.

What challenges are you acing?

There is low public nancial literacy among the investing public, the potential

issuers, and proessionals in the capital markets industry. There are ew productson the market and lack o a comprehensive capital markets legal ramework. Thisis bound to change as the Capital Market law and the Capital Market Authorityhave recently been gazetted and the law on Collective Investment Schemes willalso be published soon.

Where do you see the RSE in ve years?

In ve years, we see RSE ully automated and ully integrated with the rest o theregions markets. RSE will have more products and diferent market segmentssuch as alternative market segment, a more developed debt market and newproducts. The RSE will be playing a bigger role in unding the economy oRwanda.

Why did you join ASEA?

We decided to join ASEA in order to exchange ideas on market developmentand other relevant issues o the capital market industry with the other memberexchanges on the continent.

Contacts

Rwanda Stock Exchange Ltd | Kigali City Tower1st Floor | Avenue du CommerceP O Box 3882, Kigali RWANDA

Tel:+250 252575968 ext 104Cell: +250 788 505965Email: [email protected]

Spotlight on new

Member RwandaStock Exchange

Rwanda Stock Exchangejoined ASEA inDecember 2011

RWANDA STOCK EXCHANGE


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In late January, Nairobi became thelatest securities exchange to ofer aregulated capital market to Aricasgrowth companies seeking capital.

The Growth Enterprise MarketSegment (GEMS) was launched on22 January with Nairobi SecuritiesExchange Chairman Eddy Njorogedescribing Aricas small and medium-enterprises (SMEs) as a major drivero our countrys economy. CEO PeterMwangi added that the market would

make a undamental contributionto the stability o Kenyas nancialsystem. Like other growth capitalboards across the continent, GEMSis designed to ofer a regulatory andtrading environment to meet the needo SMEs. The aim is that they can raisegood amounts o initial and ongoingcapital, boost their prole and enjoymore liquidity in their shares.

A ew days earlier, the EgyptianExchange (EGX) approved the listingo the 23rd company on Nilex, itsmarket or growing medium andsmall companies. Shares o Al FanarContracting Construction TradeImport And Export Co were due tobe added to the database with efectrom 20 January but not traded untilthe company complies with listingsrequirements. SMEs have beeneloquently described as the missingmiddle in Aricas development (seegraphs). Speaking at the Arican

Securities Exchanges Associationconerence in Cairo in December 2012,Lanre Akinola, editor o This Is Aricamagazine, said Few things are goingto be as critical to long-term utureo Arica as job creation. He said thatAricas growing workorce, already320 million strong and set to grow to500 million by 2020 and to pass that oChina by 2025, is only an asset i theyhave productive work. He stressedthe importance o SMEs, saying

they comprise 95% o all enterprisein developed countries (memberso the Organization or EconomicCooperation and Development -

OECD), provide 70% o all employmentacross OECD and 75% o GDP. Withouta booming SME sector Arica, will notull its potential.

According to research by theInternational Finance Corporation,part o the World Bank Group, SMEsare important drivers o growth acrosssub-Saharan Arica, constitutingup to 90% o all businesses. The IFCsays supporting SME growth and

competitiveness is central to its Aricastrategy as access to nance is acritical constraint to SME growth and

job creation. Many banks preer tolend to larger and longer-establishedbusinesses . For instance in Mauritius,according to Sunil Benimadhu, CEO oSEM and Chairman o ASEA, the SMEsector is key in terms o the numbero companies and the number o

jobs. He said: Access to capital is amajor problem. Most would go to thebanking sector to raise the moneythey need. The banking sector hasbeen relatively risk-averse.

Aricas stock exchanges are steppingup the plate (see table). One o therst to launch a growth capital boardwas South Aricas Johannesburg StockExchange (JSE Ltd), which launchedits alternative exchange (AltX) divisionin October 2003, ater ailures withventure capital and developingcapital boards. The rst listings were in

January 2004 and the start was slow,but eventually the board picked upand has listed over 100 companies.

Siobhan Cleary, the JSEs Directoro Strategy and Public Policy, toldthe ASEA conerence the board waslaunched with the SA GovernmentsDepartment o Trade and Industry inrecognition o the importance o jobcreation and SMEs. One model wasLondon Stock Exchanges successul

Alternative Investment Market (AIM),which attracts growth investmentsrom around the world but Cleary saysthe JSE approach was diferent. AltX

Growth boards boostAricas most importantbusinessesby Tom Minney

GROWTH BOARDS


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requires similar levels o complianceto the Main Board, but requirements

or share capital are lower and thenumber o shareholders requiredis hal that o Main Board. Insteado sponsors, we have a designatedadvisor who is much more involvedin hand-holding, we introduced thedirectors induction programme,which all our AltX directors have togo through beore they are listed, it isabout running listed companies.

Now we have 63 listed companieswith market capitalization o USD40million, and we reached a peakat USD77 million. Since 2003, 21companies have graduated to a MainBoard listing, and there have only been11 de-listings.

The Stock Exchange o Mauritius hasalso scored success with raising capitalor SMEs. Benimadhu explains: Weapproached the setting up o a marketor SMEs diferently. We did not createa platorm and ask SMEs to apply or

a listing on this regulated platorm.We rst launched an unregulatedplatorm and invited shareholdersto use the SEMs trading platormto trade in the shares o a numbero SMEs. This unregulated platormattracted two or three companiesinitially. This number grew over timeand, by the end o 2005, shares omore than 80 companies were tradedon this platorm. Thats when the SEMelt that the time had come to set up

a regulated platorm or SMEs and weocially approached the Boards o the80+ companies, inviting them to listtheir securities on the Development& Enterprise Market (DEM), the newregulated platorm or SMEs that weplanned to launch. About 50 o the80+ companies accepted to jointhe new platorm and the DEM waslaunched in August 2006.Namibia and Botswana have bothset up growth capital boards, calledDevX and the Venture Capital

Board respectively. For example,Namibia ollows the JSE example inrequiring prompt announcements

and disclosure o trading results, butmoved away rom the Main Board

requirements such as that a companyshould have three years o prothistory, as well as scaling down thenumber o shares, share capital andother requirements. Some otherexchanges, such as Malawi and

Tanzania, have yet to gain listings orthe growth board.

Allowing companies which havenot yet got a track record o protsis a major shit in risk or investors.Exchanges ofering growth boardsneed to ensure there are sucientwealth warnings and investors arevery conscious these investmentsare high risk. For example, Namibiaand Botswana have listed miningexploration companies, among thehighest-risk investments and usuallysuitable only or specialized investorswith a spread portolio, although someo the NSX and BSE listings are alreadylisted on other international ventureexchanges aimed at specialized

mining investors.

For many Arican stock exchanges,liquidity is still a key problem even ortheir largest Main Board stocks. Thereis too little trading to attract activeinvestors or to set share prices thatreect uture earnings eciently. Thesituation is worse on growth capitalboards, where trading in many stockscan be only 1 or 2 deals a day. The JSEsCleary notes: Our liquidity sits at 8%,

compared to the Main Board where itis 45%. How do you get proper pricetransparency in illiquid market? Howdo you get over the idea that it is asecond-class model?However, she adds that liquidityproblems afect companies on theMain Boards as well: The reality is thati you look at exchanges anywherein the world, trading is concentratedin the top 10% or 20%, that is wherethe trading is concentrated, the greatliquidity. Liquidity declines as the

companies become smaller and lesscovered and less likely to be includingin ETFs. How do you get analysts

Now we have 63listed companies withmarket capitalization oUSD40 million, and wereached a peak at USD77million. Since 2003,

21 companies havegraduated to a MainBoard listing, and therehave only been 11de-listings.Siobhan Cleary, JSEsDirector o Strategy andPublic Policy

GROWTH BOARDS


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writing about these companies, howdo you get more retail investors, make

it more attractive or retail investorsinterested in SMEs? We need toensure it is not expensive to trade, toencourage the regulatory environmentto back investment in non-Main Boardcompanies. Large ree oats o sharescan also be intimidating to amily-owned businesses. However, lowerliquidity can still be enough or manyinvestors who are not speculators, asBenimadhu explains: Liquidity is anissue because the ree oat o thesecompanies tends to be lower than thato others; but there is daily activity anddaily trading that takes place on thosemarkets.

Private equity and venture capitalare currently central to the growtho many Arican enterprises. Part othe success story is that canny andexperienced investors bring moneyand management to their portoliocompanies. A successul entrepreneurmay lack nancial and strategic skills

or ast and sustainable growth andadding shareholder value, so teamingwith a private equity investor canhelp build a great business. A keyconsideration or entrepreneurs raisingcapital is how ast and straightorwardit is to list or raise capital on a securitiesexchange another, says James Mworiao Centum Investment, listed in Kenyaand Uganda.

A challenge or Arican securities

markets is to ensure that the directorsand top managers o listed SMEs gainskills and capacity to build sustainablebusinesses and jobs, while increasingshareholder value. Nairobi has ollowedmany other growth boards in licensingNominated Advisors (NOMADs), whowill assist companies to list on GEMSand to comply with good corporategovernance and global best practices.In some markets, the NOMADs alsoprovide some trading action in the

shares, supporting liquidity, and theymay be required to ofer research

coverage.

Aricas uture depends very heavilyon the health and growth o its SMEs.Benimadhus memorable phrase, wewant Arica rising, not Arica uprisingwas a key theme o the last ASEAconerence in Cairo, with limited streetdemonstrations a ew blocks away. AsAkinola and other speakers pointedout, this depends on providingsustainable and productive jobs tohundreds o millions o Aricans. TheSME boards are a key contribution.

Liquidity, risk and governance willchallenge investors, but growthboards are starting to play their part,particularly when it comes to raisingcapital or SMEs. As Benimadhuexplained with reerence to Mauritius:Looking at the gures 2009-2012,capital raising on that market is higherin absolute terms than on the MainBoard.

Sample growth board listingstandards:

Egypt - Nilex: Companies wishingto list must work with an approvedNominated Advisor. Listing standardsset by the Egyptian FinancialSupervisory Authority require adisclosure report and an approvedstudy on the air value o the companysshares. The company has six months tomeet other conditions set by EFSA orthe listing should be considered as i it

never took place.Nominated Advisors act as coordinatorsbetween issuers and the exchange,advise and help the company on allresponsibilities during the applicationprocess and ater listings, help thecompany ull ongoing disclosureobligations; inorm the regulators onon-compliance, help the companywith its initial public ofering, and mustprovide research coverage.

These obligations last or two yearsrom date o listing.

Private equity andventure capital arecurrently central to thegrowth o many Aricanenterprises

GROWTH BOARDS


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Kenya Growth Enterprise Market Segment, Eligibility criteria or companies

wishing to list on GEMS include, Being a registered public company minimumully paid-up capital o KES 10 million ($114,400), at least 100,000 shares inissue and ree transerability o shares, adequate working capital and solvency,operational track record o at least a year, no protability requirement, vedirectors, o which a third should be non-executive, directors with no bankruptcy,raud, criminal ofence or nancial misconduct proceedings or previous twoyears, and competent board and senior management with a least one yearexperience in the business, a third o the board members must have completedthe Directors Induction Programme and the rest have to complete it within 6months o listing, all issued shares to be immobilized, 15% o the shares mustbe available or trading & held by at least 25 independent shareholders within3 months o listing, Controlling shareholders lock in or 24 months, NOMADappointed by written contract.

The Firm Size Distribution

Source: Harvard Kennedy School (http://www.hks.harvard.edu/centers/cid/programs/entrepreneurial-nance-lab-research-initiative/the-missing-middle,accessed 21 January 2013).

Nominated Advisorsact as coordinatorsbetween issuers and theexchange, advise andhelp the company on allresponsibilities duringthe application processand ater listings

Growth Capital Boards In Africa

Name Country Website Second/growth Board Listings Comments

Botswana Stock Exchange Botswana www.bse.co.bw Venture Capital Board 10

Egyptian Exchange Egypt www.egx.com.eg Nilex 23

Ghana Stock Exchange Ghana www.gse.com.gh Ghana Alternative Market (GAX) 0 to open Mar 2013

Nairobi Securities Exchange Kenya www.nse.co.ke Growth Enterprise Market Segmentlaunched22 Jan2013

Malawi Stock Exchange Malawi www.mse.co.mw Alternative Capital Market 0

Stock Exchan ge Of Maurit ius Mauri ti us ww w.stockexchangeofmaurit ius.com Development and Enterprise Market (DE M) 47

Casablanca Stock Exc hange Morocco www.casablanca-bourse.com Develop ment Market and Growt h Market

Namibian Stock Exchange Namibia www.nsx.com.na DevX Development Capital Board 9

Johnnesburg Securities

Exchange

SouthAfrica www.jse.co.za AltX 63

Dar Es Salaam Stock Exchange Tanzania www.dse.co.tz Enterprise Growth Market Segment 0

Bourse De Tunis Tunisia www.bvmt.com.tnLe March Alternatif/AlternativeBoard 4

Lusaka Stock Exchange Zambia www.luse.co.zm Second Tier, Third Tier

Zimbabwe Stock Exchange Zimbabwe SMEs Stock Exchange 0 under development

GROWTH BOARDS


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Nairobi, 22Nd January2013: Nairobi SecuritiesExchange (NSE)Launches the GrowthEnterprise MarketSegment (GEMS)

On January 22 2013, the NairobiSecurities Exchange (NSE) launched

the Growth Enterprise MarketSegment (GEMS). GEMS enablessmall and medium sized rms to raisesubstantial initial and ongoing capital,while beneting rom increasedprole and liquidity within a regulatoryenvironment designed specically tomeet their needs. According to recentestimates, the nancial services sector,is the th largest sector o the Kenyaneconomy, contributing 6.8% o GDP. In2010 and 2011, the nancial servicessector registered the highest growthrates o 9% and 7.8% respectively;mostly driven by bank lending.Financial services can easily contributeupto 15% o GDP. An ecient GrowthEnterprise Market Segment is part othe eforts o the NSE to:-

1. Support the harnessing omedium to long term capital orthe public and private sectors;

2. Promote balance and stabilityin the nancial system;

3. Decrease dependency on the

banking sector;4. Drive the economy orward and

create jobs and provide;5. Alternative methods or

harnessing savings.

The NSE believes that the GEMS listingrequirements are also particularlysuited or SMEs wishing to access publicmarkets to expand their business and

also to raise their proles. Some o thelisting criteria are highlighted below:-

1. Minimum authorized issued andully paid up share capital o Kshs.10.0 million ($114,187.00);

2. At least 100,000 shares in issue;3. Adequate working capital or

twelve (12) months ater listing;4. Within three (3) months o listing,

at least 15% o the shares mustbe held by not less than 25shareholders excluding employeeso the issuer or amily members othe controlling shareholder.

5. Prior to listing, audited accountsor one (1) year o operations. Thereis no requirement to have made aprot, during this time;

6. The issuer to be listed shall bea public company limited byshares and registered under theCompanies Act. This means thatunder GEMS the company neednot be incorporated in Kenya, butregistered here. This can thereorebe a branch o a companyregistered anywhere in East Arica

and beyond;7. The issuer will need to retain a

Nominated Advisor to assist it to liston GEMS and to comply with goodcorporate governance practices.

The NSE now has eight (8) registeredNominated Advisors and sixteen(16) Authorised Representatives.We believe that GEMS provides anopportunity or rms participating

NAIROBI SECURITIES EXCHANGE

L- R Mr Peter Mwangi, Chie Executive, Nairobi Securities Exchange, Mr Mugo Kibati, ChieExecutive, Vision 2030, and Mr Eddy Njoroge, Chairman, Nairobi Securities Exchange


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The Nairobi SecuritiesExchange (NSE) is theprincipal securitiesexchange o Kenya

in Kenyas natural resources and mining sector to raise capital and also complywith the thirty ve percent (35%) local equity component under Legal Notice No.

118. These rms require huge ows o capital to nance their capital intensiveoperations. In order to attract deep ows o capital, a successul GEMS marketwill require that the listed securities trade reely and that there is a critical mass onancial analysts to provide research on the GEMS companies.

The NSE looks orward to working with the Capital Markets Authority, the CentralDepository and Settlement Corporation, our NoMADS, our Trading Participantsand the members o the Top 100 Midsized Companies Survey to assure thesuccess o GEMS and to channel investment ows to our SMEs. The registeredNoMADS and their designated Authorised Representatives are below:-

ABOUT NSE

The Nairobi Securities Exchange (NSE) is the principal securities exchangeo Kenya. Besides equity securities, the NSE ofers a platorm or theissuance and trading o debt securities. The NSE is a member o the AricanSecurities Exchanges Association (ASEA) and the East Arican SecuritiesExchanges Association (EASEA). It is an aliate member o the WorldFederation o Exchanges (WFE). FOR FURTHER INFORMATION PLEASECONTACT Ms. Carol Karugu Investor Relations and CommunicationsManager Nairobi Securities Exchange Tel: +254 20 2831000Email: [email protected] ,Website:www.nse.co.ke

No Nominated Advisors Designated Authorized Representatives

1 Burbidge Capital Ltd. I. Mr. Edward BurbidgeII. Mr. Michael Chomba

2 Emerging Arica Capital Ltd. I. Mr. Michael K. MusauII. Mr. Teddy Bukhala

3 NIC Capital Ltd. I. Mr. Jude AnyikoII. Mr. Eldad Wairegi

4 Standard and Mutual Ltd. I. Mr. Chris MarangaII. Mr. Joshua Goto

5 CBA Capital Ltd.. I. Mr. Isaac O. AwuondoII. Ms. Kathure Githinji-Nyamu

6 Arican Alliance InvestmentBank Ltd.

I. Mr. Gerald KimothoII. Ms. Judy Waithaka

7 Faida Investment Bank I. Mr. David MataenII. Ms. Rina Wambui Hicks

8 Kingdom Securities I. Mr. Georey .O. OdundoII. Mr. Makopa Mwasaria

NAIROBI SECURITIES EXCHANGE


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Eve Gadzikwa Chair

o Zimbabwe StockExchange Speaks on aPerspective SME Bourse

The SMEs unding requirements isa delicate matter that needs to be

constantly on our radar. Over the yearsthere have been engagements withGovernment on what the ZSE shoulddo to accommodate SMEs throughthe capital markets and nothinghas really taken of. In a number ocountries, or instance India, SouthArica Kenya, Tanzania and Uganda,economic growth has been attributedto the success o the small to mediumenterprises and the argument is otenraised that Zimbabwe is no diferentand can similarly benet i the rightattitude is adopted. The issue osustainable unding or the SMEs isthereore a natural avourite topicor the press and debates at variousorums. We also aware rom the ZSEexperience in 2008 and possibly theyears beore that the SMEs assumedhigher prominence as the electionsdraw closer. So in the same way asthe arming inputs schemes are backin the media, we should expect reshenquiries on what the ZSE is doing to

accommodate SMEs on the exchangeso that they too can tap into thecapital market. ZSE is putting in placemeasures to accommodate SMEs toactively participate in Zimbabweseconomic growth and is aware o thechallenges that need to be addressed.

ZSEs Position on SMEs

SMEs are ast-growing businesses andplay an important role in Zimbabwesemployment sector. The ZSE believes

that one o the major challengesor SMEs is unding. Regrettably, tolarge extent, SMEs do not qualiy tobe listed based on the current listingrules in place. The ZSE is aware othe increasing role o SMEs in otheremerging markets as witnessed by thecreation o SME Boards in other AricanStock Exchanges.

Advantage o listing to SMEs

The undamental questions that beg

answers are-What are the benets iany o Listing SMEs?

What is the value proposition o ZSE toSMEs?Valuation: Current and potentialinvestors can check the value o theirinvestment daily by reerring to theprice list o quoted companies aspublished in the press. This is a majoradvantage over investors in unlistedcompanies.Mergers: Merger schemes appealmore to the sellers when the sharesthey receive are listed on the StockExchange and are thus marketable.Intrinsic Benets: Being regulated andto be able to compete globallyMentorship Opportunity: During thegrowth phase o the business due tochange in board compositionNo Interest Burden:Unlike getting a loanrom a nancial institution, a pureequity listing has no interest burdenand no repayment periods. Duringdicult times, the SME is not exposedto variable interest rates rom debt.Risk Sharing: Due to the limited liability

concept and a number o shareholdersinvolved, there is risk sharing.Human Capital: Listing attracts humancapital with the right skills

Other specic benets are;

Access to capital: IPOs, Rights Issues,Private Placements in the uture

Improved nancial position: Abilityto access loans rom nancialinstitutions; Opens up opportunitiesor urther growth in new markets

due to stronger capital baseReduced personal unding and

guaranteesPublic company status: Visibility as a

listed entity- a big plus in buildinga brand

Marketability o sharesSo what are the Challenges already

experienced?

There are a number o challengespeculiar to SMEs or instance; In thepast there was no clear denition

ZIMBABWE STOCK EXCHANGE


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The ZSE has seen

an unparalleledopportunity tocontribute to economicgrowth by activelypursuing growth arease.g. SMEs

o who qualied to be in the SMEcategory. The ZSE was thought to

operate on the lines o a venturecapital company /private equity unds this is not the case. The requiremento rules was not sold to the SMEs andthe Listing Rules were thought to bea discrimination strategy. As a result,SMEs ailed to appreciate the dilutiono the ounders shareholding thatresults rom listing and moreover, thecosts o listing have always been amajor consideration.

How the ZSE Intends To Proceed with the

SME Bourse

The ZSE has seen an unparalleledopportunity to contribute to economicgrowth by actively pursuing growthareas e.g. SMEs. To this end, it will thusparticipate at all SME seminars and givethe ZSE side o the story or the beneto all stakeholders. It will also work withthe SME Association in its endeavoursto educate its members and developthe ramework transparently withthe input o all stakeholders and

regulators. The ramework will spellout the Rules that apply to SMEs andmeasures taken to minimise costs tothe SMEs without creating additionalrisks to the investor. The ListingsCommittee will provide the rst levelo support and guidance in this efort,reporting to the Board. Although therequirements o SMEs will competeor attention with a number o highpriority issues already on the table,ZSE must regardless proceed and at

least put the ramework in place now.How many SMEs will list when all thework is done will testimony o thesectors capability to meet the listingrequirements and attract interest rominormed investors.

Brie Synopsis o Zimbabwe Stock Exchange

and its operations

This article also seeks to provide anoverview o the Zimbabwe Stock

Exchange. ZSE is an institution whichhosts a market where securities (shares

and bonds) are traded. An exchangeis made up o buyers and sellers whocome together to trade during specichours on business days. Buyers andsellers represent investors in listedcompanies.

Who are the investors in a listed company?

Investors are individuals andinstitutions that inject capital in abusiness with a view o getting areturn on their investment. Thesereturns can be either in dividends orin the increase in value o their stakein the business. Examples o investorsinclude pension unds, institutionsand individuals. For this discussion,investors will be termed shareholderswho also include Foreigners (subjectto Exchange Control Limits). It shouldbe noted that oreign participation isoten greater than 50%.

Stock Exchange Listing Requirements

Listing on the stock exchange is

voluntary however; certain minimumcriteria have to be met beore aprospective company can be listed.A listed company also has continuingobligations to the investors and theZSE and these criteria and obligationsare enshrined in the Stock ExchangeListing Requirements.

New Application Listing Requirements in

Brie

The entity must be duly constituted

and registered as a company inZimbabwe. A company must ofer tothe public at least 30% o its issuedequity capital. The Memorandum andArticles o Association o the companymust comply with the requirements othe Exchange set out in the Rules. TheZSE requires that the company to haveat least 300 shareholders to justiy thelisting. Entity must be duly constitutedand registered as a company in


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Zimbabwe. A company must ofer tothe public at least 30% o its issued

equity capital. The Memorandum andArticles o Association o the companymust comply with the requirements othe Exchange set out in the Rules. TheZSE requires that the company to haveat least 300 shareholders to justiy thelisting.Prot history by the companyor the last ve nancial years togetherwith a report by the companysauditors thereon is required whereapplicable. Forecast earnings anddividends supported by an auditorsreport is required. Details o sharecapital structure, loan capital and theborrowing powers o the companymust be provided. These includebut are not limited to maintaininga standard o continuous disclosuresucient to enable investors and theiradvisers to assess its perormanceand to estimate its prospects,value addition resulting in capitalappreciation and or paying dividends,timeously providing nancial results toshareholders, convening shareholder

meetings as required by CompaniesAct and Listing Rules, enablingshareholders to exercise their votingrights where appropriate in suchmeetings, and treating holders o anyclass o the Companys shares equally.More details are ound in the ListingRules themselves.

Proposed SME Bourse

The market is a viable alternativeto raise unding. Focus now is to

look at how the capital markets canbe opened to assist SMEs throughthe creation o an SME bourse. Thecreation o an SME bourse is a positivedevelopment and the next step orthe ZSE in particular and the countryas a whole as the exchange looks toinclusive business involving SMEs.

Although the mechanics o the wholestructure are still in skeletal orm ZSE

will share what the outlines o thebourse are proposed to be.

Structure o the Proposed SME Bourse

The SME Bourse/Exchange will be anintegral part o the ZSE. It is proposedthat the ZSE listed companies willbe on two boards. The main boardwill be made up o counters thatare currently listed on the ZSE. It isenvisioned that the SME bourse will bea secondary board on the ZimbabweStock Exchange and considered to bethe junior market o the ZSE. Similarinitiatives have been carried out inother countries.

Listing Rules o the SME Bourse

Generally, it is appreciated that SMEsare at a diferent stage o growth inthe business cycle and may aceunique challenges that are diferentrom an average company currentlylisted on the ZSE.

It has been argued that the

current Listing Rules are onerousand insensitive to the typical SMEbusiness models and operations.

The SME Bourse will have its ownListing Rules. The ZSE is looking atdrating rules that are tailored tothe SMEs, in consultation with thevarious stakeholders, including theSME Association.

The current Listing Requirementswill be used as a starting point andbe tailored to acilitate listing o

qualiying SMEs on the bourse.Concessions may be made in areas

such as the minimum number oshareholders, protability historybut these have to be approved bythe ZSE and SECZ in consultationwith SMEA.

The ZSE requires that

the company to have atleast 300 shareholdersto justiy the listing



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What will be an IPO or an SME look like?

The rst sale o stock by the SME to

the public through the SME Bourse. Pre-listing statement will be

produced- to market the companyand make a compelling case why itis a good investment vehicle.

The SME will obtain the assistance oan underwriting rm, which helps itdetermine what type o security toissue (common or preerred), thebest ofering price and the time tobring it to market.

Other technical specialists involved:stockbrokers, lawyers, the ZSE, SECZ,qualied accountants, advisorsand valuation specialists (wherenecessary).

Due to the exercise, there areunavoidable costs which have tobe incurred in the process. Whatcan be done to reduce costswithout compromising regulatoryramework? (To be decided duringconsultations with stakeholders)

Key Corporate Governance issues o Listed

SMEsReturn on investment: Investors willonly put their money where they areconvinced that their rate o returns willbe realised. Have a plan that will growthe business and provide dividendsor capital appreciation. Propositionshould be listable.Scrutiny: Going public opensup the company to scrutiny by

stakeholders, especially investors. Pre-listing statements disclose a lot o

detail about the current and utureoperations o the Company. Investorswant to know where their money isgoing to and what it will be used or.Risk management: The regulatorsand investors are increasingly lookingat sound risk management policieswhich are set at the top. SMEs whichare seeking a listing should start re-evaluating their internal controls,strategy, policies and procedures.Dilution of control: Current listingrules require that the Company musthave at least 300 shareholders. Theproposed SME Bourse rules may havea lower minimum threshold but theshare registers o SMEs who desire tobe listed will change signicantly. Beprepared to share the Company

In conclusion

Liquidity on the market is very lowand the ZSE will work with SMEs tocome up with a robust ramework tobe successul to acilitate capital raise

whist protecting investors. Only SMEsthat meet the criteria will be listed.Formation o a working committeewith various stakeholders will includingthe SME Association, ZSE other parties.

This panel will be responsible orsetting up the milestones that arenecessary to eventually result in theormation o an SME Bourse.

Investors will only put

their money where theyare convinced that theirrate o returns will berealised

Zimbabwe Stock Exchange

4th Floor , 101 Building Kwameh Nkrumah Avenue, HarareP O Box CY 2231, Causeway Harare


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I Olympic medals were given out oreconomic development, Arica wouldbe picking up a silver medal or havingthe worlds second-astest rate oeconomic growth behind Asia. Aricasnancial markets are growing in termso size and breadth o instrumentstraded but it is not uncommon orArican companies to outgrow theirlocal market and to seek a listing inLondon, New York, Hong Kong or

Toronto, as they target bourses withgood liquidity and sucient capitalavailability.

There are 98 Arican-ocussedcompanies listed on London StockExchange Group markets, and Aricancompanies have raised over USD5.7billon since 2008.London is perceived to be a globalgateway or ast growing Aricancompanies to access globalinvestment unds. Although it isimportant that analysts and investorsin London and elsewhere see the

exciting business opportunities Aricahas to ofer, Arican exchanges willhopeully soon be able to ll thisliquidity gap themselves. One o thechallenges or Arican exchanges ishow to market themselves, in order todrive volumes up in their markets. Todo this exchanges may need to investin appropriate technology.

In April 2012, the Nigerian StockExchange (NSE) entered an agreementwith NASDAQ OMX Group to upgrade

their cash equities trading platorm.Under the terms o the agreementNASDAQ OMX will replace NSEsexisting NASDAQ OMX platorm(Horizon) with one powered by itsX-stream technology. The upgrade is

expected to be rolled out at NSE inthe rst hal o 2013. The upgrade toX-stream technology will provide NSE,one o the largest exchanges in Arica,with a multi-asset trading platorm.

The migration to X-stream is a stepin NSEs ambition to become a WestArican hub able to host and acilitateother regional markets.

Exchanges will also need to innovateand design products to suit thelocal market, thus making a greaterrange o options available or Arican

investors. The move to X-stream willalso broaden the NSE product-baseas well as build its capacity to oferhosting services to other exchangesin the region. Speaking at the recentLondon Stock Exchange Group annualArican Investment Summit, Dr. NgoziOkonjo-Iweala, Minister o Finance,Nigeria said:

Developing strong, transparenteconomies with a backbone o local,

well-nanced companies able toinvest locally as well as continent-wideis a key step in Aricas development.

Todays event is clear evidence othe exceptional levels o enthusiasminternational investors share with meabout Nigeria and Aricas growthpotential.The work o institutionssuch as the Arican SecuritiesExchanges association and the AricanDevelopment Bank will be invaluablein spreading best practice, boostingintra-Arican development, improving

institutional competence andtransparency and acting as a regionalintegration. It will also acilitatekeeping more o Aricas wealth insideArica.

Arican Exchanges byHerbie Skeete

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Eective Roadshows:

rom planning to resultsand back againby Anne GuimardPresident FINEO

In the global competition or capital,reaching out to investors, both current

and potential, is a undamental aspecto any Investor Relations strategy. Thisis what roadshows are or: literally,management will go on the road tomeet target audiences at investorconerences, on one-on-one meetingsor at group presentations. Objectivesand circumstances can vary rom onecompany to another:

Promote a transaction on thecapital markets (deal roadshow).

This remains the primary reasonto conduct a roadshow which isorganized by the investment banksleading the transaction. They controlthe ormat; length, itinerary o theroadshow according to the size othe transaction and to their ownclient base.

Test the IPO waters. I a companyis considering various options tonance its development plan, suchas oating its shares and go public,it may be well advised to present atan investor conerence or organize aseries o meetings in selected citiesor meet with prospective privateequity unds. Its management willhave to learn how to present thecompanys strengths, perormanceand prospects to investors andhow to answer their questionsin a transparent and convincingmanner. As a consequence, it will bein a better position to evaluate themarkets appetite or its own sector,

country and business model, beoredeciding on whether an IPO is rightor not.

Diversiy institutional ownership.A shareholder base that is tooconcentrated is more a liability thanan asset or a companys valuation:it may indicate a lack o liquidityand, thereore, a potentially morevolatile valuation. Also, it is one othe missions o Investor Relationsto maintain at all times through a

proper outreach efort a pool oinvestors who can become buyerswhen others are selling, thus urtherenhancing liquidity.

Increase analyst and media coverage.In order to make the most o your

roadshow abroad, companies shouldconsider getting in touch with sellside analysts who cover their countryor sector, or instance through thelocal securities analysts associationor by checking the websites o peercompanies, competitors to ndout about their analyst coverage.Similarly, a press conerence or aew meetings with nancial mediamight prove instrumental in raisinga companys prole on the localcapital market.

Optimize management time. It is notalways easy to block out an entireweek or a roadshow abroad in thecalendar o senior management orInvestor Relations purposes. Yet,senior management may travel tovisit overseas production sites, meetwith local partners or attend tradeshows. Also, investors do not expectChie Executive Ocers or ChieFinancial Ocers to dedicate morethan 25% o their time to Investor

Relations. Taking advantage o suchtrips to meet with a ew investors ororganize a luncheon presentationis an efective way o optimizingmanagement time in order to stayon the radar screens o potential andexisting shareholders.

Raise the prole o new ChieExecutive Ocer. It is always goodgovernance to introduce a newsenior management team to thenancial community, both at home

and abroad. When the new CEOcomes rom outside the company, itis better to wait until he or she hasan in-depth understanding o thecompanys competitive strengthsand challenges, and is able toormulate a strategic vision or thecompany. In any case, a new CEOmust receive proper training in termso disclosure rules, investor relationsand even media training.

Reach out to key stakeholders in theevent o a crisis. A key valuation driver

is the amount o trust that a companyis able to establish and maintain withits shareholder base, through good

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times and bad. When circumstancesbecome suddenly adverse (such

as a prot warning or a majorproduct recall or take-over threats),senior management would be welladvised to reach out themselvesto their largest shareholders. Aroadshow, in particular via tele-or videoconerencing (time is othe essence) is a powerul way tomaintain, or even restore trust.

Gather market intelligence oncompetitors and peers. Roadshowsrepresent an excellent, albeit toooten neglected, opportunityor management to hear whatinvestors are thinking (and saying)about the companys competitors.Yet, investors, who meet all yearround with other companies, arean untapped wealth o competitiveinormation. All it takes is askingthe right questions. Also, attendinginvestor conerences can be quitehelpul to gather new ideas byseeing how peer group companiespresent their own investment case.

With this is mind, the success o anyroadshow program requires advanceplanning, consistent executionand post-event evaluation.

Top tips

Understand your investor base Set an objective or the tripAdvance planningNon-deal roadshows, that is, thosethat not organized in conjunction with

a capital market transaction,are most requently organizedimmediately ater earnings have beenannounced. But is that such a goodidea? I a company has a thoroughdisclosure around its earnings orstrategic announcement, including adetailed and widely distributed pressrelease, a conerence call and itstranscript, a roadshow might notbe that urgent. Also, the numbers ocompanies that report ull year resultsbetween January and March all overthe world is staggering. It is likely that

most o them will want to meet withmore or less the same investors as you,

creating a major trac bottleneck atinvestors doors. Unless circumstanceswarrant it, it is smarter to organize aroadshow away rom earnings andquiet periods: senior management hasmore chances to meet with the rightinvestment-decision making personand will enjoy a discussion ocusedmore on strategy and longer termprospects than on historical, outdatedperormance. Advance planning alsoimplies to decide whom, within thesenior management team is going tomeet with which investor or analystand where. For instance, the InvestorRelations Ocer may be doing allthe ground work with prospectiveinvestors while the CEOs time maybe best employed to meet with largeshareholders. Chie Financial Ocersare by ar the most active roadshowparticipants on thecompanys side. Where to go is anothercritical decision to make. Accordingto the 2012 Global Roadshow Report

sponsored by Bank o America MerrillLynch, 91% o global companies go onthe road about 20 days peryear. Their top ve cities:

1. New York2. London3. Boston4. San Francisco5. Frankurt.

Worth mentioning is that Singapore isrising above Hong Kong on global listo most-visited cities or roadshows.

This list certainly has to be adjusted totake into account the growing appetiteor Arican listed companies, theemergence o Arican sovereign undsand the expansion o Arican equitymarkets. Also part o the preparationprocess is the selection o the partners:while relying on the corporate accessteams o investment banks or sell-siderms remains the most requently usedormat, companies may also combinetheir own resources with those o theirInvestor Relations advisors to handle

investor targeting, messaging and

Gather market

intelligence oncompetitors and peers.Roadshows representan excellent, albeittoo oten neglected,opportunity or

management to hearwhat investors arethinking (and saying)about the companyscompetitors

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logistics while getting useul advice ontime zones, languages, cultural

diferences or local holidays.

Top tips

Choose the right partner (sell-side,third party party, etc.)

Understand the geography (US vsEurope vs Arica)

Consistent executionWhen a company goes on the road, itshows commitment to continue anddo so in the uture. It shouldalso be careul about delivering

consistent messages rom oneroadshow to another. Other criticalaspects require that managementknow its audience and be able toswitch rom an on-screenpresentation to intensive Q&A session.Whatever the goal, whether thecompany organizes the roadshow onits own or through a third-partyorganization, it is worth rememberingthat success or ailure lies with logistics.

Top tips

Make sure the analyst o yourinvestment bank or a senior partnerat your IR rm is on the trip

Take good notes to ollow up aterthe roadshow and remember whatwas discussed next time you meetwith the investor

Post-event evaluationAt FINEO Investor Relations Advisors,we believe the quality o InvestorRelations is a competitive diferentiatorcan result in higher valuation. Each

partner has more than 25 years oexperience in globalroadshows and can thereore testiythat

asea newsletter 2013 february edition.pdf

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