The west African regional Exchange Bourse Régionale des Valeurs Mobilières (BRVM) has started the year 2023 with new compartments on its Equity market ("Prestige", "Principal" and "Croissance") and two new stock market indices ("BRVM 30" and "BRVM Prestige").
This new market configuration is in line with BRVM's strategic orientations aimed at making the market more attractive, adapting to changes in the capital markets and constantly conforming to the best international standards in its sector.
Thus, the BRVM's equity market is organised into three compartments defined according to new criteria that are more representative of market developments and take into account the level of market capitalisation, free float and compliance with financial reporting obligations as well as the requirements for a history of audited accounts and net profit.
To be eligible for the Prestige Compartment, listed companies must justify, among other things, a minimum of 10 years of activity, a market capitalization of at least 50 billion CFA francs, a free float of at least 20% of the capital, corresponding to a minimum of 4 million shares, the regular and timely publication of all the required financial information for the previous fiscal year and their commitment to Corporate Social Responsibility (CSR). The Prestige compartment includes the leading stocks of the equity market. As for the Growth Compartment (Croissance), it is intended to host SMEs and companies with strong growth potential.
With this new listing organization, companies previously classified in the First and Second Compartments of the Stock Exchange are now reclassified in the "Prestige" and "Principal" Compartments, in accordance with the eligibility criteria.
Moreover, BRVM publishes as of today, two new market indices, in addition to its composite index:
- The "BRVM Prestige" index, which groups together all the securities listed in the Prestige Compartment. The revision will be done on an annual basis according to the eligibility criteria of the companies in the Prestige Compartment;
- The "BRVM 30" index, which groups together the thirty (30) most traded stocks over a quarter and which replaces the BRVM 10 index. This index is more diversified and takes into account the evolution of the market liquidity over the last years.
- The "BRVM Composite" index, which includes all companies listed on the BRVM, as it already exists.
The "BRVM Prestige" and "BRVM 30" indices came into effect on Monday, January 2, 2023 with a base of 100.
At the end of this first day of quotation, the levels of the BRVM market indices are as follows
- The "BRVM Prestige" index: 100.54
- The "BRVM 30" index: 100.13
- The "BRVM Composite" index: 206.34
These changes introduced by BRVM on its equity market bring more readability for investors and asset managers. They also allow listed companies to improve their stock market life, in particular through the development of an ever more advanced communication and attraction relationship with their shareholders and customers.
