The JSE introduced the fast-track listing process to allow companies that have already been admitted to certain other major stock exchanges for at least 18 months to place a secondary listing on the JSE’s AltX or Main Board. Companies that are listed on the London, Toronto, Australia and New York (NYSE) stock exchanges, as well as the NYSE Euronext, are able to fast-track the secondary-listing process.

Instead of a prelisting statement, they only need a prelisting announcement that contains certain disclosure items related to the listing requirements and details of the actual listing on the JSE.

The bourse will reference information that is already available on the primary listing exchange.

According to the JSE’s Business Development Manager: Capital Markets, Patrycja Kula-Verster, the application process is paperless, requires far less administration and significantly cuts down on the time it takes to get a secondary listing on the JSE.

‘The process can take between three and six weeks and gives companies the opportunity to access South Africa’s deep pockets of capital at a lower cost by eliminating a second round of administrative preparation for listing.’

Kula-Verster believes the benefits of listing are significant. ‘For minimal once-off and annual costs, the value returns are extensive. Fast-track listings are a streamlined process of joining the JSE, making it quicker and easier when listing on either the AltX or Main Board.’

Sirius Real Estate Limited (SRE) listed on the JSE’s AltX board in the real estate holdings and development sector last December, becoming the first fast-track listing since the exchange introduced the process as part of the amendment to its listing requirements.

‘International investors trading on the JSE are looking at the opportunity to stock pick top African listings’

PATRYCJA KULA-VERSTER, BUSINESS DEVELOPMENT MANAGER: CAPITAL MARKETS, JSE

SRE has its primary listing on the London Stock Exchange’s alternative investment market. SA investors make up half of its investor base, and its key interests are in the acquisition of business parks.

Kula-Verster says the response to fast-track listings has been encouraging. ‘There has been a great response to the changes in our listing requirements and we are constantly engaging with companies that are interested in the process.’

She says the JSE has been working with potential issuers and the broader ecosystem to highlight the benefits of listing on the JSE.

‘Our engagements are with companies from the accredited exchanges that qualify for the fast-track listing process. We believe that there is significant benefit for those who would like to tap our local investors and diversify their shareholders.

‘The greater the variety of companies we have listed on the JSE, the greater the choices for our local and emerging market investors.’

Kula-Verster says JSE investors are constantly looking at making investments not only in SA companies but foreign firms too. Those that are foreign domiciled but have a listing on the exchange are treated as local for investment purposes.

Companies can also use a listing on the JSE as a springboard into other countries in Africa.

‘International investors trading on the JSE are looking at the opportunity to stock pick top African listings,’ says Kula-Verster.

‘Companies operating in Africa can showcase themselves better on the JSE than on a large international exchange where they run the risk of disappearing into the crowd.’

For the past five years, the WEF has ranked SA in first place for the regulation of its securities exchange, and the JSE has given the assurance that the high standards of regulation it has come to be known for will be maintained.

By Kim Cloete
Image: Greatstock/Corbis