JSE expects up to 10 new listings in 2024

The Johannesburg Stock Exchange (JSE) expects up to ten new listings on its bourse in 2024, with many familiar names showing interest in tapping the country’s public markets. 

This was revealed by the head of origination and deals at the JSE, Sam Mokorosi, who told CNBC Africa that the company’s plans to make the exchange more attractive to companies are bearing fruit. 

Experts have noted the “delisting” crisis afflicting the JSE, which has picked up pace since 2010. 

In 2023, there are expected to be 27 delistings and only six listings across South Africa’s exchanges.

Not only has the number of delistings been steadily declining, but the proportion involving capital raising has also declined.

Mokorosi noted that the delisting trend seen on the JSE is a global phenomenon and is not limited to it. 

Even the world’s deepest capital markets in the United States have seen listings decline from 7,500 at their peak to just over 3,000. 

This is due mainly to the rise of private equity and venture capital, which has allowed companies to raise funds outside of the public markets. 

Mokorosi said it is important to note that the number of delistings the JSE has experienced this year is not high compared to historical levels. 

“What we are struggling with is the number of new listings, so that is where our effort is,” he said. 

In 2023, there have been three listings – Premier Foods, Primary Health Properties, and Copper360. 

“We are starting to see some momentum, and our pipeline is looking good. Market dynamics are against us, but we will continue to try to bring new listings in,” Mokorosi said. 

He added that the JSE expects between five and ten companies to list on the bourse next year. 

However, many of these companies have delayed their listings to the second half of 2024 to avoid any uncertainty before South Africa’s general election. 

“In the second half of 2024, we will see some familiar names that have been in the press coming to the markets,” Mokorosi said. 

Bringing in secondary listings from global companies, particularly those based in Asia, is a big focus for the JSE in 2024.

Mokorosi said this, however, will take time to bear fruit as the local bourse has first to build a relationship with their Asian counterparts.