It happens that at certain stages in the life of a business, the need arises to be listed on the stock market. Being listed on the Stock Exchange has certain advantages. First, it is to be able to access new resources for financing the activity in return for shares or bonds of the company. It is also offering a certain liquidity to shareholders by allowing them to access a market where exchanges are facilitated. Finally, it helps to increase the reputation of the company.
Being listed on the BRVM requires an approach, compliance with admission conditions, provision of required documents and compliance with information obligations.
The most important step for the company is to make an informed decision on its IPO (Initial Public Offering) and based on objective reasons such as the need to raise funds to finance the activity or the need to increase reputation and notoriety. Indeed, being listed on the stock exchange is often for a company a sign of a certain maturity in governance, in particular because the listed company is subject to the obligation to periodically and regularly inform about its financial situation and all important events.
The decision to go public must be voted on by the Extraordinary General Assembly.
Once this step has been completed, the company must appoint a management and intermediation company which will ensure the structuring of the operation and the fundraising.
The structuring makes it possible to perform all the necessary due diligence in order to obtain the authorization to carry out the transaction. Indeed, to call on the stock market is to make a public offering and this type of operation requires the prior approval of the regulatory authority, the Regional Council for Public Savings and the Financial Market (CREPMF ). It is once this visa has been obtained that the actual fundraising can be carried out by raising funds from the investing public in return for the issuance of the company’s securities. Then follow the registration and admission to listing of the issued securities. The company will then be officially listed with an acronym and a code to identify it and trade its securities on the BRVM market.
Critères | 1st compartment | 2nd compartment | 3rd compartment |
Legal form | Public Limited Company | Public Limited Company | Public Limited Company |
Minimum share capital | 100 millions FCFA | 100 millions FCFA | 10 millions de FCFA |
Market capitalization | > 500 millions FCFA | > 200 millions FCFA | N/A |
Minimum period of activity | 5 years | 2 years | 2 years |
Certified account history | 2 years | 2 years | 2 years |
Net margin on sales | 3% in each of the last three years | N/A | N/A |
Minimum distribution of capital to the public (free float) | 20% must match or correspond to a minimum volume that varies between 2 and 10 million shares, depending on the market capitalization of the company | 20% must match or correspond to a minimum volume that varies between 2 and 10 million shares, depending on the market capitalization of the company | 10% must correspond to a minimum of 500,000 shares |
Dissemination of financial information | Events, quarterly, semi-annually, annually | Events, semi-annually, annually | |
Market facilitation agreement | Obligatory | Obligatory | Not required |
Business Plan | N/A | N/A | Required (Over a minimum of 3 years) |
Listing Sponso | N/A | N/A | Required |
Critères | Bond market |
Minimum Number of Securities on Issue | ≥ 25 000 securities |
Nominal Value of the Issue | ≥ 500 millions de F CFA |
Minimum Period of Activity | Not required |
Certified account history | Not required |
Net margin on sales or turnover | Not required |
Evolution of sales or ternover | Not required |
Market facilitation agreement | Obligatory |
Dematerialization of securities | Obligatory |
Guarantee to be provided | - Financial Rating - In the absence of a score higher than Investment grade, a guarantee from an approved practitioner |
Stock market | Stock market | Stock market | Bond market | |
List of documents to provide | 1st Comp. | 2nd Comp. | States | Companies |
A request for admission to listing addressed to the BRVM | Required | Required | Required | Required |
A letter of commitment from the issuer | Required | Required | Required | Required |
An Information Note | Required | Required | Required | Required |
The issuer's articles of association and deeds of incorporation | Required | Required | Required | Required |
Certified accounts of AGOs and AGEs relating to the last three (3) financial years | Required | Required | Not required | Not required |
Certified account history | 5 years | 2 years | Not required | Not required |
The Resolution of the General Assembly or the Decision of the body that authorized the transaction | Required | Required | Required | Required |
The Benefits stipulated for the benefit of the Founders, Directors and any other person | Required | Required | N/A | N/A |
CREPMF Visa(s) | Required | Required | Required | Required |
A list of Shareholders who have acquired or subscribed for securities of the issuer in the twelve (12) months preceding the admission request and the conditions for carrying out transactions | Required | Required | N/A | N/A |
A copy of the placement, underwriting or guarantee contract signed between the issuer and the SGI (s) responsible for distributing the securities to the public | Required | Required | Required | Required |
Draft press releases, inserts and advertisements intended for the written press as well as any other information to be disseminated to the public, including, where applicable, scripts or texts for radio or television announcements | Required | Required | Required | Required |
Six (6) copies of the admission file | Required | Required | Required | Required |
The issue report | Required | Required | Required | Required |
The logos of the issuer and the SGI leading the placement | Required | Required | Required | Required |
The Notice of Registration of securities in the books of the Central Custodian | Required | Required | Required | Required |
Proof of payment of the costs inherent in the presence of the security on the quotation | N/A | N/A | Required | Required |
Listed companies have an obligation of information and transparency vis-à-vis their investors. To do this, they must publish periodic and permanent information.
Periodic information obligations
Annual publications
Information | Publication deadline |
A table of activities and results; where applicable, the same documents as those designated above, drawn up in consolidated form | No later than March 31 of each year |
The summary financial statements (and possibly the summary consolidated financial statements) provisional uncertified | No later than April 30 of each year |
The income appropriation project | No later than April 30 of each year |
The summary financial statements (and possibly the consolidated summary financial statements) certified and approved | Within 45 days of the approval of the Financial Statements by the AGO or the AGE |
The decision to allocate the result | Within 45 days of the approval of the Financial Statements by the AGO or the AGE |
The reports (general and specific) of the statutory auditors | Within 45 days of the approval of the Financial Statements by the AGO or the AGE |
The minutes of each of the ordinary and extraordinary AGs | As soon as they are written |
The annual management report | As soon as they are written |
The declaration form of the composition of the capital | As soon as they are written |
Half-yearly publications
Information | Publication deadline |
The first half-year activity report certified by the statutory auditors | Four months after the end |
The half-year revenue forecasts and earnings trends The statutory auditors' certificate The half-year balance sheet of the liquidity contract | of the 1st semester |
Quarterly publications
Information | Publication deadline |
The main indicators (turnover, net income, etc.) and a comment from the company's management on the evolution of the activity and the probable impact on the results | 1 month after the end of the 1st and 3rd trimester |
The permanent informations
Les informations permanentes peuvent être considérées comme toute information pouvant avoir une incidence sur la vie de la société : changement de direction, prise de participation, perte d’un gros client, nouveaux marchés ; etc.
The issuer is required to inform its investors as soon as possible.