The JSE is one of the top 20 largest exchanges by market capitalisation as ranked by the World Federation of Exchanges. It has provided issuers with access to deep and liquid capital markets in a regulated and secure marketplace for over 130 years.
Direct listing was introduced in 2006 and since then, 140 companies have listed on the JSE Main Board and AltX using this method.
What is a Direct Listing?
Listing on the JSE, a multi-asset class exchange, provides issuers with access to deep and liquid capital markets and a range of powerful tools to adapt and thrive in a fast-changing environment.
A “Direct Listing” or “Listing by way of Introduction” is a quick and easy way of listing on the JSE, giving you access to the South African Capital markets. This method of listing means that you don’t raise capital and don’t issue additional shares on listing.
What does it do?
Direct listings allow companies to go public by selling shares held by insiders, employees, and other existing investors, without the time, expense and other formalities involved in issuing new shares. A direct listing is therefore, the fastest and least expensive way to list.
Who is it for?
Direct listings are ideal for:
- Companies that wish to gain local and international exposure by raising their profile in the South African capital markets.
- Companies that wish to gain access to the liquidity of public markets for their current shareholders without diluting existing shares or being subject to lockup agreements.
- Companies that wish to use their shares as a form of currency to pursue opportunities (such as mergers and acquisitions) in Africa.
- Companies that are listed on another exchange or wish to migrate shares from one exchange to another.
What are the requirements?
The main requirements are:
- The applicant must comply with the listing conditions set out in the JSE’s rules under the current listing framework for AltX, Main Board or secondary listings.