Business
New Stock Market Segment: SEMX to Finance High-Growth Companies
Launched in December of last year, the Stock Exchange of Mauritius (SEM) has introduced the SEMX, a unique opportunity for companies that have achieved significant growth to finance new expansion projects. This initiative has quickly resonated with key economic stakeholders.
For businesses that have reached peak growth, profitability, and overall success within their sectors, seeking financing from banks for further development can be challenging.
Now, these high-growth companies have a new alternative at the Stock Exchange of Mauritius.
To effectively meet the needs of these fast-growing businesses, the SEM has established a specific segment, SEMX, designed to facilitate fundraising for their new projects.
The SEMX provides a platform for companies to create and trade financial instruments tailored to their requirements while attracting investors willing to transact in their preferred currencies.
This new segment operates under a set of customized listing rules that cater to the unique demands of high-growth companies.
Among these regulations are provisions designed to ensure optimal liquidity in the secondary market, enhancing the attractiveness of companies listed on the SEMX.
To ensure the smooth operation of this segment, Tuesday Markets Ltd has been appointed as the first market maker—an essential player in maintaining market fluidity, akin to those found in major international stock exchanges.
Eligible companies on the SEMX can choose between two subscription criteria:
- Maintaining an average annual growth rate of at least 25% in revenue over the past three years; or
- Demonstrating a 100% growth rate over the past five years.
Sunil Benimadhu, Chief Executive of the Stock Exchange of Mauritius, asserted that “the launch of the SEMX represents a key milestone in our strategy to position the SEM as a world-class international exchange.
This initiative is reflecting our commitment to providing an attractive fundraising platform tailored to local and international issuers focused on Africa and seeking niche markets.”
The Stock Exchange of Mauritius has quickly begun attracting financial players interested in participating in this new segment.
Among them is Africa Eats Ltd, an investment company dedicated to combating hunger and poverty in Africa by supporting the agricultural and food supply chain.
Africa Eats has listed three companies on the SEMX: Africa Eats, Elite Meat, and Ziweto.
According to Luni Libes, Chief Executive Officer of Africa Eats Ltd:
“This marks the first step toward connecting capital markets with prosperous small and medium enterprises across the African continent.
This listing underscores our commitment to prioritizing growth and building resilient food supply chains throughout the region.”
Source: l’Express
