As part of new listing requirements implemented by the JSE on Tuesday, companies listed on select international bourses will now be able to fast-track their secondary listings on the JSE.
The local bourse announced to the market in August that it had made global amendments to its listing requirements.
One of the amendments allows for the introduction of the fast-track listing process, which the JSE believes will significantly reduce the time it takes to attain a secondary listing on the local bourse.
Companies that have been listed on the ASX, the LSE, the TSX, and the NYSE and NYSE Euronext for at least 18 months will be able to fast-track the process for a secondary listing on the JSE main board or the AltX.
Companies making use of the fast-track process do not need to produce a prelisting statement and are only required to release a prelisting announcement that contains certain disclosure items pursuant to the listings requirements and details of the actual listing on the JSE.
“The streamlined process means that a secondary listing on the JSE gives companies the opportunity to access South Africa’s deep pools of capital at a lower cost by eliminating a second round of administrative preparation for listing,” explains JSE Capital Markets director Donna Oosthuyse.
Oosthuyse says the process will also make it easier for multinational companies already operating in South Africa and the rest of the continent to list on the JSE.
“Companies can use a listing on the JSE as a springboard into other countries in Africa. International investors trading on the JSE are looking at the opportunity to stock pick top African listings and companies operating in Africa can showcase themselves better on the JSE than on a large international exchange where they run the risk of disappearing in the crowd.”