The Botswana Stock Exchange (BSE) venture capital market board is primarily dedicated to companies, even startups, who are still in their phases of growth and may not have grown well enough to meet the listing requirements on the main board. According to the latest figures from BSE, the board currently has 5 companies listed.
The following are some of the conditions that companies must meet to be listed on the venture capital market board.
- Subscribed capital of at least P2 500,000.00
- Mode of operation and business plans with credible forecasts of profits. No profit history is necessary.
- At least 10% of each class of shares shall be held by the public.
- The initial price of each share shall not be less than 50 thebe.
- The number of public shareholders shall be at least 100 for equity shares and 50 for preference.
- Directors and Managers must have successful records of achievement in their respective roles.
- Listing prospectus must clearly bear a warning about the speculative nature of the investment in such a company.
Examples of Startups Listed On The Board
- Shumba Energy (Listed in 2013) - Raised P7.1 million.
- Afinitas (Listed in 2015) - Raised P93.9 million.
For startups looking to raise capital via the BSE, the venture capital board is a legitimate consideration when taking into view its less stringent requirements compared to the main board.