SMALL BUSINESSES in the Eastern Cape will soon be able to raise capital through the issuing of shares. The JSE Securities Exchange has announced the first alternative exchange in Africa that will list small to medium growing companies. The new market, AltX, is expected to open for trading in October 2003. Companies are currently being sought to join AltX to issue new shares, raise funds, widen their investor base and have their shares traded on a regulated market. AltX will have reduced listing fees, but will be supported by the full range of JSE services - including the trading of shares on the same system as the main board, market surveillance to eliminate irregularities, and settlement of AltX securities through the JSE's electronic system, STRATE. Companies require no profit history to list, but a minimum share capital of R2-million is required, according to AltX manager Noah Greenhill. There is also a compulsory four-day directors' induction programme, which will be offered by the Wits Business School. Companies require no profit history to list, but a minimum share capital of R2-million is required. AltX manager Noah Greenhill said that AltX would target junior mining companies as well as black economic empowerment companies, among others. "We researched parallel exchanges internationally, and have incorporated best practice into AltX", Greenhill said. "The most successful parallel market has been AIM in the UK, which has admitted more than 850 companies since it opened in 1995. Collectively, these companies have raised more than US$10-billion while on AIM." The success of AltX, Greenhill said, would be based "on a philosophy which emphasises relationship management, marketing and continuous education." Russell Loubser, chief executive of the JSE, commented: "All companies start small, and we are committed to supporting the burgeoning SME [small and medium enterprise] sector of the South African economy." AltX has the full backing of the department of trade and industry (DTI). According to DTI Director-General Alistair Ruiters, the establishment of AltX "will promote black economic empowerment and assist in creating sustainable employment. "Small and medium enterprises play a significant role in our economy, and we are wholeheartedly supportive of initiatives which will enhance this sector."