Enterprise Growth Market Segment (EGMs)
The Enterprise Growth Market segment (EGMs) is a segment for small and medium sized companies. EGMs enable these firms to raise substantial capital and accelerate their growth within a regulator environment designed specifically to meet their needs. The segment offers companies flexible listing requirements in recognition of the company’s growth phase..
EGM, a segment launched in September 2013, is a sponsor driven market designed for companies with prospects. The Sponsor is known as Nominated Advisor (NOMAD), must access suitability of the potential issuers, taking into consideration attributes such as business prospects corporate conduct and advocacy of its control. EGM is regarded as the second-tier market segment of DSE. EGM market segments market segments provide companies with greater visibility via the Capital Market and clearly defined platform to raise funds from both institution and retail investors, domestic and foreign
Requirements to list in the EGMs
1. Track record of existence
None. But if the applicant has no track record, has to show that funds are required to support a project which has been fully researched with indicated costs..
2. Profitable track record
3. Issued and paid-up capital
At least TZS 200 million.
4. Incorporation Status
Issuers must be incorporated in Tanzania as public companies or else where the companies’ law is in conformity with the law of Tanzania (for cross-listing companies).
5. Net Tangible Assets
The company shall have at least 50% of its net assets situated within Tanzania.
6. Issuer Type
Startup, Growing companies of all sizes and / or companies without profit track record.
7. Method of offering new issue of shares
Public offering, underwriting, private placement, or combination of all.
8. Business Operations
Detailed profile of planned operations including the following: 5 years’ business plan and independent technical feasibility report for companies with less than 12 months of operating history.
9. Public shareholding spread
At least 10% of its shares must be held by public.
10. Minimum number of shareholders upon listing
At least 100 shareholders.
11. Period moratorium
If the Issuer has less than three years track record, promoters to be locked-in for up to 3 years..
12. Utilization process of proceeds
Disclose the estimated amount of the proceeds from the offer (net of the expenses of the offer) broken down into each principal intended use.If the anticipated proceeds will not be sufficient to fund all of the intended uses, disclose the amount and sources of other funds needed. Where. specific uses are not known for any portion of the proceeds, disclose the general uses for which the proceeds are proposed to be applied. State the minimum amount which, in the reasonable opinion of the directors of the relevant corporation, must be raised by the offer.
13. Nominated Advisor
Must have a Nominated Advisor at all time of listing.
14. Directors and Management
Disclosure of age, qualification and relevant experiences for the preceding five years.
15. Financial Statements
Must be IFRS compliant and must have been audited by authorized auditor.
Registered by NBAA.
17. Same Management
No need. Emphasis should be on competence of the Management team.
18. Audit Committees
Issuers must have audit committee as per CMSA guidelines on Corporate Governance.
19. Working Capital
Directors of the Issuer to give opinion on adequacy of working capital for at least 12 months.
20. Certificate of comfort from relevant regulators
Issuers to obtain comfort letters from institutions regulating their operations.
21. Articles and Memorandum of Association
They must provide for public issuance of securities as well protection of minority shareholders, transferability of shares, borrowing powers of directors, corporate governance principles.
22. Composition of board of Directors
At least one third of the board members must be non-executive directors.
23. Prospectus approved by a regulator
Prospectus to be approved by the Authority.
24. Compliance to other Corporate Governance Issues
All applicants to undertake to comply with other corporate governance principle as per CMSA guidelines for corporate governance as improved from time to time.
25. Clear dividend polic
The Issuer to disclose clear dividend policy.
26. Publication in the Press
Applicants to prepare abridged Prospectuses..