Johannesburg, 5 November 2020: JSE Limited, the operator of the Johannesburg Stock Exchange (JSE), has entered into a transaction with next generation UK fintech company, Globacap Technology Limited (Globacap) to progress a digital private placements platform and registry services.
The deal brings together the JSE, Africa’s largest Stock Exchange, and Globacap, a leading regulated private placement and capital management platform that digitally administrates over £1 billion of private shares and debt instruments for 60 companies and over 8,000 shareholders worldwide in 35 countries. Globacap’s unique distributed ledger technology allows digital registrar services to be reflected in real time.
The JSE will collaborate with Globacap to establish a private placements platform to advance and digitise capital raising for infrastructure finance and SMEs. “The deal with Globacap will support a critical growth node across the continent in the infrastructure and SME sectors. The transaction reinforces the JSE’s commitment to foster inclusive and sustainable growth by advancing access to capital markets,” says Leila Fourie, Group CEO of the JSE.
The continent requires extensive investment into infrastructure as a vital imperative for its growth. African infrastructure funding requirements are estimated to range from $130-170 billion per year, however, commitments fall short of funding requirements. “The JSE will use Globacap’s innovative technology and expertise to progress infrastructure finance and SME private funding. The deal will help stimulate investment into those markets by narrowing the funding gap and supporting job creation and economic growth,” says Valdene Reddy, Director Capital Markets.
As part of the transaction and reaffirming the JSE’s growth strategy, the Exchange will invest GBP4 million for a minority equity stake in Globacap. The investment in Globacap will be funded from the Group’s existing cash reserves and is expected to be finalized during the first quarter of 2021.The transaction is subject to the fulfilment of certain conditions precedent including approval by relevant local and UK authorities.
Myles Milston, CEO of Globacap comments, “This is an incredible project in a vast and growing market. We are excited to be part of it, to launch both platforms with the Johannesburg Stock Exchange, and for the JSE’s investment into Globacap, representing a milestone in our progress. The deployment of our technology with such an established public market as the JSE moves us one step closer to realising our goal of the digitisation of the world’s private capital markets.”
JSE Group CEO, Leila Fourie says “The Globacap collaboration and investment is part of our ongoing strategy to sustainably grow and diversify our business. Working with a leading capital markets fintech player positions the JSE well in our efforts to innovate a digital capital raise process in private placements.”
ABOUT THE JSE
The Johannesburg Stock Exchange (JSE) has a well-established history operating as a marketplace for trading financial products. It is a pioneering, globally connected exchange group that enables inclusive economic growth through trusted, world class, socially responsible products, and services for the investor of the future. It offers secure and efficient primary and secondary capital markets across a diverse range of securities, spanning equities, derivatives, and debt markets. It prides itself as being the market of choice for local and international investors looking to gain exposure to leading capital markets on the African continent. The JSE is currently ranked in the Top 20 largest stock exchanges in the world by market capitalisation, and is the largest stock exchange in Africa, having been in operation for 130 years.
As a leading global exchange, the JSE co-creates, unlocks value & makes real connections happen.
Globacap, registered and headquartered in the United Kingdom, is a next-generation capital markets fintech company offering distributed ledger solutions for private capital markets and digital registry services. Globacap is regulated by the UK’s Financial Conduct Authority. The Globacap platform provides seamless, end-to-end fund raising management tools designed to automate private issuances in the equity and debt capital markets. The platform also offers second round liquidity capabilities that enable holders of equity or debt instruments to exit or syndicate their original investment. Additionally, Globacap offers a complementary digital registrar service that digitises and simplifies the administration of shareholder registers. Globacap was recently recognised as one of UK’s most disruptive companies in the Disruption50 index.
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