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JSE amends Listing Requirements and introduces fast track listing process

01 October 2014 Donna Oosthuyse, JSE

The JSE has made global amendments to its Listings Requirements which were announced to the market on 29 August 2014 and take effect today. These amendments will result in the issue of a whole new service issue, Service Issue 18.

As part of the amendments to the Listing Requirements, it has also introduced a fast track listing process to make it quicker and easier for companies already listed on certain international exchange to secondary list on the local bourse.

The new fast track listing process allows international companies, who have already been admitted to certain other major stock exchanges for a period of at least 18 months, to place a secondary listing on AltX or the JSE’s Main Board. The following exchanges are accredited by the JSE for the fast track listing process:

• Australia Stock Exchange
• London Stock Exchange
• New York Stock Exchange (NYSE) and NYSE Euronext
• Toronto Stock Exchange

Companies listed on the above exchanges and making use of the fast track listing process do not need to produce a prelisting statement and, instead, will only release a prelisting announcement. This announcement contains certain disclosure items pursuant to the Listings Requirements and details of the actual listing on the JSE, which is then read in conjunction with the company’s latest published information (including its annual report) which has been prepared in accordance with the requirements of the exchange where it has a primary listing. The fast track listing process seeks to significantly reduce the time it takes to attain a secondary 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,” says Donna Oosthuyse, Director: Capital Markets at the JSE.

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 here. “Companies can use a listing on the JSE as a springboard into other countries in Africa. International investors trading on the JSE are looking 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.”

“The JSE has satisfied itself with the disclosure and regulatory approach of the accredited exchanges. The World Economic Forum (WEF) has ranked South Africa in first place for the regulation of our securities exchange for the past five years and we believe the fast tracking listing process does not compromise the high standard of regulation we have set for ourselves in any way,” says John Burke, Director: Issuer Regulation at the JSE.

For the updated amendments to the listing requirements please visit the JSE website here.

 

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