Johannesburg Bourse Plans Overhaul to Encourage Smaller Listings
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 19 2024
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Source: Bloomberg
- JSE Listing Requirements: JSE Ltd. plans to ease listing requirements to attract smaller companies, proposing a split into Prime and General Segments to streamline regulations.
- Proposed Reforms: Key reforms include more flexibility in share issuance, removing fairness opinions for certain transactions, and simplifying financial reporting requirements for the general segment.
- Importance of Changes: The aim is to encourage investment, boost confidence among investors, attract more capital, and retain current listings to improve the overall health of the capital market.
- Decline in Listings: South Africa's main stock exchange has seen a decrease in listings due to challenging regulatory and funding conditions, making it less appealing for initial public offerings.
- Feedback and Approval: Public feedback on the proposal is open until May 20, 2024, and approval from the Financial Sector Conduct Authority is required for the plans to be implemented.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
