Sees end to delisting trend

S2+$11(6%85* - Africa’s biggest bourse, the -ohannesburg StocN Exchange, is slowly turning the tide from a wave of delistings to companies once again considering initial public offerings.

%anNers cited potential interest rate cuts, South Africa’s upcoming election and the country’s plans to alleviate rolling blacNouts among factors for the revival. -30organ Chase Co. said the banN was seeing more companies preparing to come to marNet in -ohannesburg.

“We are seeing a significant increase in capital marNet activity in 2 2 and the pipeline for 2 2 is also looNing strong,” said Edward %ell, -30organ’s -ohannesburg-based managing director.

“7his compares to the last two years of very muted activity, not Must on the continent, but globally.”

7he -SE saw Must two I3Os last year, according to data compiled by %loomberg. And while it saw delistings in 2 2 , the trend appears to be slowing this year with two delistings so far.

-SE CEO /eila Fourie anticipates as many as listings in 2 2 . “We are optimistic it is looNing better, but we are cautiously optimistic,” she said.

Recovery

South Africa has entered the new year more optimistically after years of underconfidence in its economic recovery, exemplified by a wave of delistings from the -SE.

Inflation is easing and growth expectations have doubled ± albeit from a low base ± and crippling power cuts are expected to ease within the next two years.

Africa’s most-industriali]ed economy will also hold its most important election since the dawn of its democracy years ago, with the ruling African 1ational Congress expected to lose some support.

“Foreign capital is watching the 2 2 elections carefully,” said *oldman Sachs *roup Inc.’s Chief Executive Officer for South Africa Simon 'enny.

“A combination of a stable election outcome, declining interest rates and more certainty around energy security should be very positive for our equity marNet.”