Admission to the quotation
For the realization of a project which requires the financing of their activities, companies, institutions and governments have appeal to external resources to complete the internal, often insufficient resources. To do it, they can appeal to financial markets by emitting securities to obtain the capital of the investors. The market of recently emitted values is called the primary market, while the securities already in circulation’s market are called secondary market.
The BRVM (secondary market) is the continuation of the Public call in the Savings. It is organized in the sense that it is subjected to a strict rule and in the sense that it owns instruments specifically implemented to facilitate:
- The liquidation by facilitating the exchanges of securities by the confrontation of a large number of orders, purchase and sale ;
- The equality between all the stakeholders, by the transparency and the real-time negotiation for all ;
- The security by the guarantee that the buyers will be delivered and that the sellers will be paid to the definite date.
To take part to the market, a security (share or bond) is registered in a compartment of the quotation of the BRVM. The stock exchange has, since the starting up of its activities, two compartments for the shares and a compartment for debenture loans (others compartments can be born).
To be admitted in the first compartment, the company candidate has to answer the following conditions:
- Present a F CFA 500 millions market capitalization;
- Have a net profit on turnover of 3% on each of the last three years;
- Present 5 years of certified accounts;
- Make a commitment to sign a contract of market animation;
- Spread in the public at least 20 % of its capital, from the initial public offering;
- Make a commitment to publish the biannual estimations of turnovers and tendencies of results.
In the second compartment, the admittance is subjected to the following conditions:
- Present a F CFA 200 millions CFA market capitalization;
- Present 2 years of guaranteed accounts;
- Undertake to sign a contract of market animation;
- Undertake to spread in the public at least 20 % of its capital within two years or 15 % in case of introduction by capital growth.
The bond compartment - evidences of indebtedness - is accessible to debentures hereafter meeting the conditions:
- The minimal number of titles to the emission is of 25.000;
- Minimal face value of the emission is of F CFA 500 millions.