JSE heads for 20 listings this year
THE JSE LOOKS set to end the 130th year of its existence with 20 new listings with the expected listing of AYO Technology Solutions – a majority black-owned ICT company this week. The local bourse-listed its 19th listing this year on Friday with Alphamin Resources. Donna Nemer, the director of capital markets at the JSE, said the bourse is proud to provide a platform for companies in the rest of Africa to raise capital in the South African market.
“As the JSE we believe we have an important role to play in the development of not only the South African economy but also that of the greater African continent. A listing on the JSE gives companies like Alphamin access to our deep and highly liquid capital markets while providing investors a means of getting exposure to Africa’s great growth potential through a well-regulated and trusted entry point,” Nemer said.
Alphamin Resources has its primary listing on the Toronto Venture Exchange in Canada. The company holds, as its principal investment, a controlling interest in Alphamin Bisie Mining, the vehicle which operates the Bisie Tin Mine.
Boris Kamstra, the chief executive of Alphamin, said they are delighted to have a market presence on the JSE’s AltX. “The timing is perfect for investors to take part in the development of the Bisie Tin Mine project, the highest-grade known tin deposit in the world. A number of Alphamin’s key contractors have subscribed in the placement,” Kamstra said.
Strong year Spin-off companies have helped the JSE book a strong year for listings in 2017. Of the 18 debuts this year, six are carved out of other companies, most of which are publicly traded.
Some of the spin-offs included African Equity Empowerment Investment’s (AEEI) subsidiary, Premier Fishing, and Brands. Ayo Technology is also controlled by AEEI and is expected to list on Thursday. AEEI’s share price has surged more than 1 000 percent in the last five years.
The Patrice Motsepe-controlled African Rainbow Capital Investments also listed in the Speciality Finance Sector on the main board of the JSE.
The biggest listing of the year was that of Steinhoff Africa Retail (Star), whose listing raised R15.3 billion, making it the biggest in Africa this year and the third biggest ever.
Some of Star’s well-known brands include Pep and Pep Africa, Ackermans, Bradlows and Incredible Connection. Professional services firm Price-waterhouseCoopers earlier this year said capital raised from Dis-Chem’s Initial Public Offering (IPO) was worth $305 million, making it the biggest IPO in Africa in 2016.
The firm also said in 2016, capital raised from IPOs by companies listed on the JSE increased by 25 percent in US dollar terms as compared to 2015, mainly driven by a comparatively stronger rand and three large listings by DisChem, the Liberty Two Degrees real estate investment trust and one of South Africa’s largest private equity firms, Ethos.