What are the advantages for listing on the NSX?

Financing

• Fresh capital and increased equity base for organic growth or to fund acquisitions
• Decreased dependency on creditors
• Enhanced availability of future funds through follow-on offerings as well as potentially easier access to other forms of finance, such as bank loans, as the company has shown that it is capable of meeting listing requirements, and its actions are subject to NSX regulations and public scrutiny
• Lower costs of debt due to higher credit rating
• Company’s shares can be used to finance acquisitions, as seller are more likely to accept marketable listed shares in exchange for their investment
• A listing provides a basis for the valuation of a company’s shares, which is important for acquisitions, by the issue of shares

Original Shareholders

• All shareholders will benefit from the establishment of a market for their shares, leading to a potentially higher demand and higher prices than would have been the case in a limited market
• A listing enables original shareholders to realize part or all their holdings
• Original shareholders may benefit from the increased liquidity of their investment brought about by a listing
• Parastatals or government controlled corporations may make use of the stock exchange to broaden their shareholder base

Employees

• The implementation of share incentive schemes may result in a significant improvement of the motivation of both staff and management. A listing would make such a scheme more attractive to employees, and facilitate its operation
• The public attention focused on the company by the media may boost the morale of employees, as they share in the enhanced status of the company

General

• Be associated with the most pre-eminent companies doing business in Namibia
• The enhanced status brought about by a listing may favorably affect relations with banks, suppliers, customers and the Government
• Stock exchange bulletins and reports in the financial press result in the greater publicity for the company and its product
• Namibia capital markets continuously perform well due to strong and consistent political governance, sound national economic management, and social stability
• Access to a diversified, deep investor base consisting of both local and international investors
• Compels the company to improve its reporting, meaning better information is available for decision making, both internally and externally
• There is no capital gains tax, marketable securities tax or stamp duty on deals executed on the NSX for foreign investors. The only special tax is Non-Resident Shareholders Tax at 10% of dividends. There are no general restrictions on foreign investment