JSE Private Placements (JPP), an innovative marketplace that facilitates private funding transactions between companies and investors, has experienced significant growth over the past year.
The platform, which is a wholly-owned subsidiary of the Johannesburg Stock Exchange (JSE), attained its financial services provider license in December 2021 and launch the business in March 2022.
Since then, JSE Private Placements has attracted a healthy pipeline of unlisted companies seeking investment. Currently, the platform has 37 deals accumulatively raising R7.1 billion.
Over the past 10 months, JSE Private Placements has secured over R100 million in funding with another R350 million at term sheet stage with an investor base that has grown from R12 billion to R20 billion.
This proves that demand for a private funding marketplace in South Africa is at an all-time high, and has justified the JSE’s development of the Private Placements platform.
Fast-tracking SME growth in South Africa
One of the key focuses of the JSE Private Placements is to make funding more accessible to South African SMEs.
These organisations typically cannot list their businesses on a public exchange, and therefore do not have the same opportunities to procure the significant cash injections they may need to take their businesses to the next level.
“JSE Private Placements is an alternative way for companies and infrastructure projects to raise capital or attract investment,” said Sam Mokorosi, the JSE’s Head of Origination and Deals.
“With this platform, we’re building a future-fit capital market that pairs up private debt and equity issuers with investors, including venture capital funders.”
JSE Private Placements is focused on important sectors for economic growth in South Africa – such as renewable energy, infrastructure, and ICT.
The sectors it can help empower is equally important to the JSE, as it takes its role as a responsible corporate player seriously.
“We have onboarded companies that are seeking funding for a myriad of projects including the development of rural areas, solar-powered projects and local manufacturers to name a few. JSE Private Placements is passionate about collaborating with industry experts to create an ecosystem that will accelerate growth in Africa,” continued Mokorosi.
Work with JSE Private Placements
JSE Private Placements is proud of its growth over the past year and looks forward to helping more businesses and investors develop mutually beneficial relationships and continue to provide a streamlined, cost-effective platform for raising private capital and investing.