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.
The JSE expanded its secondary listing framework to also include eligibility for London Stock Exchange (LSE) issuers listed on its Standard Market for a fast-tracked secondary listing on the JSE.
What is a Standard Listing?
A standard listing allows companies listed under the LSE’s standard listing framework to complete a fast-track secondary listing on the JSE. Foreign companies with a secondary listing on the JSE are classified as domestic, which provides them with exposure to local institutional mandates. It also provides local investors with the opportunity to diversify their investments in Rand hedge securities.
What does it do?
A secondary listing on the JSE provides several benefits, including access to a large, sophisticated and liquid capital market, local investment classification, eligibility for FTSE/JSE Index inclusion, African investment opportunities and an enhanced South African market profile.
The JSE is satisfied with the LSE’s regulation and disclosure regime. Issuers must disclose notifications dealing with changes in beneficial ownership and directors’ dealings in securities by directors and those closely related to the directors as per South African and British legislation.
To be eligible for the fast-track listing, a company must be listed on the LSE Standard Market for more than 18 months. There is no need for a full prospectus, instead, applicants must make a pre-listing announcement and meet the spread requirements on the local South Africa register. The pre-listing announcement is less onerous but still contains the prescribed information. This includes website details where information from the company’s latest audited financial statements, competent persons’ reports and valuation reports can be accessed.
Who is it for?
A standard listing is ideal for companies listed on the LSE seeking access to capital, new investors, increased visibility or a local presence in African and South African markets.
What are the requirements?
- Standard listings must comply with the European Union (EU) minimum requirements which include disclosure directives laid down by EU legislation, such as the EU Prospectus Directive, the Transparency Directive and the Market Abuse Directive (the EU Disclosure Directives).
- The applicant must comply with the conditions for listing set out in the JSE’s rules under the current listing framework for secondary listings framework.