The Growth Enterprise Market Segment (GEMS) on the Nairobi Securities Exchange serves as a tailored platform for Small and Medium-Sized Companies (SMEs) to secure substantial capital and expedite their growth trajectories.
Designed within a regulatory framework specifically crafted to meet the unique needs of growing enterprises, GEMS offers a flexible listing environment.
In this article, we delve into the significance of GEMS and the additional requirements that guide companies aiming to list on this dynamic market segment.
Companies on GEMS:
GEMS proudly features a selection of vibrant companies, each contributing to the economic landscape in distinctive ways.
Some of the noteworthy entities listed on GEMS include:
- Homeboyz Entertainment Plc
- Home Africa Ltd
- Kurwitu Ventures Ltd
- Flame Tree Group Holdings Ltd
- Nairobi Business Ventures Ltd
Requirements to List on the Growth Enterprise Market Segment:
- Incorporation Status:
- Issuer to be limited by shares and registered under the Companies Act.
- Share Capital:
- Shall have a minimum issued and fully paid-up ordinary share capital of 10m. The issuer must have not less than one hundred thousand shares in issue.
- Net Assets:
- Not Applicable.
- Share Transferability:
- Shares to be listed shall be freely transferable and not subject to any restrictions on marketability or any preemptive rights.
- Availability and Reliability of Financial Records:
- Not Applicable.
- Competence of Directors and Management:
- The issuer must have a minimum of five directors, with at least a third of the Board as non-executive directors.
- Dividend Policy:
- Not Applicable.
- Profitability:
- Not Applicable.
- Working Capital and Solvency:
- The issuer shall not be insolvent; they must have adequate working capital. The Directors of the Issuer shall give an opinion on the adequacy of working capital for at least twelve months immediately following the share offering, and the auditors of the issuer shall confirm in writing the adequacy of that capital.
- Share and Ownership Structure:
- The Issuer must ensure at least 15% of the issued shares (excluding those held by a shareholder or people associated or acting in concert with him or the Company’s Senior Managers) are available for trade by the public. An issuer shall cease to be eligible for listing upon the expiry of three months of the listing date if the securities available for trade by the public are held by fewer than twenty-five shareholders (excluding those held by a controlling shareholder or people associated or acting in concert with him or the Company’s Senior Managers).
- Listed Shares to be Immobilized:
- All issued shares must be deposited at a central depository established under the Central Depositories Act, 2000 (No. 4 of 2000).
- Nominated Advisor:
- The issuer must appoint a Nominated Adviser in terms of a written contract and must ensure that it has a Nominated Adviser at all times.
Conclusion:
The Growth Enterprise Market Segment stands as a catalyst for the growth and development of Small and Medium-Sized Companies. By providing a tailored environment that recognizes the unique challenges and opportunities these enterprises face, GEMS contributes significantly to the economic vibrancy of the region.
As the list of companies on GEMS expands, it underlines the importance of fostering a dynamic and supportive ecosystem for SMEs, enabling them to thrive, create employment, and contribute to the overall economic resilience of the nation.
