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What to List

Discover how listing on the National Securities Exchange Of Somalia can help your business access capital, enhance visibility, and fuel growth

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Overview

Listing on the Exchange provides an avenue for firms seeking to raise equity capital for expansion or strategic acquisitions without the need to incur commercial debt. Once listed, a company can issue significantly more equity stake in its enterprise to raise additional working or growth capital through secondary public offerings.

Listing provides a significantly broader shareholder base than it would be otherwise and it provides a market-based and objective valuation of the enterprise. Listing is a key strategic decision that boosts the company's national and global profile, improves overall governance, and its standing as a sustainable business enterprise.

This image positioning ends up attracting other strategic partnerships including cross listings across the region. The benefits of listing include:

Enhanced Corporate Governance

Listing enhances the corporate governance of enterprises. The continuous financial disclosure requirements enhance the transparency and public trust of disclosures.

Enhanced Visibility

A listed company is highly regarded by the public and its peers for its credibility and excellence with a high level of global recognition. Listed companies are often covered by global media networks and data broadcasting and analysis tools.

Enhanced Credibility

Listing increases the credibility of a business enterprise against potential partners and creditors which enables the enterprise to acquire investment and loans at preferable terms than otherwise. Listing also increases the marketability of products and services offered by the enterprise.

Employee Stock Ownership Plan (ESOP)

Listing provides avenues for companies to provide Stock Option Schemes that can be provided to employees, thereby promoting higher performance, and helping attract and retain talented employees. Various senior executives of a company can be paid through a mix of salary and share options.

Improved Liquidity

Listing transforms liquidity, guaranteeing shareholders the opportunity to realize the value of their investments. Securities that are offered to the public can be transferred in an efficient and transparent manner with market prices determined according to supply and demand.

Continuity and Sustainability

Listing brings about full or partial decoupling of ownership and management, installs good corporate governance and financial responsibility in the enterprise, and allows successors to benefit from the dividends of a business enterprise that outlives their founders.

Portfolio Management

Listing provides a strategic avenue for owners, especially institutional investors, to sell the whole or part of the company as part of investment portfolio management. Listing makes it easier to sell publicly traded stocks at their true value than private holdings.

What to List

At NSES, we welcome a variety of securities that contribute to the diversity and vibrancy of the Somali Financial Markets. The following types of assets can be listed on our exchange:

Equities (Stocks)

Common stocks of publicly traded companies, offering investors a stake in the ownership of the company.

Examples: Common stocks, preference shares, rights issues

Bonds

Corporate, government and municipal bonds that provide fixed income to investors.

Examples: Corporate bonds, government treasuries, sukuk (Islamic bonds)

REITs (Real Estate Investment Trusts)

Companies that own, operate or finance real estate that produces income, listed for investors seeking to gain exposure to the real estate market.

Examples: Commercial property REITs, residential REITs

ETPs (Exchange-Traded Products)

Investment funds that are traded on stock exchanges, including ETFs that track an index, commodity, or a basket of assets.

Examples: Exchange-traded funds (ETFs), exchange-traded notes (ETNs)

Derivatives

Financial instruments whose value is derived from underlying assets.

Examples: Options, futures, swaps (subject to regulatory approval)

Exchange-Traded Products (ETPs)

Exchange-Traded Products (ETPs) have become an increasingly popular investment vehicle, and NSES provides a flexible platform for listing these innovative products.

Exchange-Traded Funds (ETFs)

ETFs allow investors to track the performance of various asset classes, such as indices, sectors, commodities, and international markets. With low expense ratios and high liquidity, ETFs offer a cost-effective way to gain diversified exposure to different investment themes.

Popular ETF Categories:

  • Equity ETFs: Track the performance of specific sectors or indices.
  • Commodity ETFs: Track the performance of commodities like gold, oil, or agricultural products.
  • Bond ETFs: Provide exposure to various fixed-income instruments, including government and corporate bonds.

Exchange-Traded Notes (ETNs)

ETNs are debt instruments that track the performance of a specific market index or asset. Unlike ETFs, ETNs do not hold the underlying assets but are backed by the issuing institution's credit.

NSES Exchange-Traded Products

How to List

Listing your company or product on NSES involves a structured process designed to ensure both transparency and compliance with regulatory standards. Here's how you can begin:

1

Eligibility Check

Your company or security must meet NSES's requirements for listing. This includes financial criteria, corporate governance standards and legal compliance.

2

Prepare Documentation

Prepare and submit key documents such as financial statements, company charters and disclosure documents that demonstrate the health and sustainability of your business or security.

3

Select the Right Listing Type

Decide on the type of listing you wish to pursue. You may opt for a Primary Listing on NSES or a Secondary Listing if your company is already listed on another exchange.

4

Initial Application

Complete and submit the listing application form online. This includes providing details about your company, the security you wish to list, and supporting documentation.

Related Resources

Listing Requirements

Listing Requirements

Detailed information about eligibility criteria, documentation, and compliance requirements for listing on NSES.

Listing Process Guide

Listing Process Guide

Step-by-step guide to the NSES listing process, including timelines, key milestones, and best practices.

Frequently Asked Questions

Frequently Asked Questions

Answers to common questions about listing on NSES, from fees and timelines to ongoing obligations.

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