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In February, finance minister Tito Mboweni announced that the 12J scheme would come to an end on June 30 2021. This means that you may be an asset manager or structuring house wondering what to do with your 12J and best route for creating a permanent capital vehicle. Listing 12Js or Investment Holding Company on the JSE creates that permanent capital vehicle to facilitated access to institutional investors and liquidity for your current shareholders.
What are the benefits of listing a Section 12J?
1. Liquidity for the 12Js and shareholders.
2. Listing on the JSE opens up investment mandates for listed investment in the asset class
3. VCC shareholders can dispose of their shares in the open market on a listed exchange, creating more liquidity in the market.
4. Elevates the profile of 12J industry by tapping into listed investors
5. Listing mobilises exits options for underlying VCC investments
6. Upfront income tax deduction
7. Cost effective way of accessing the listed markets, JSE now allows for 12J administrators to fulfil DA role.
8. Enhanced visibility and profile
9. SME development