JSE Eyes Revival Amid New Listings, Unbundlings, and Global Collaborations

The Johannesburg Stock Exchange (JSE), Africa’s largest stock exchange, is at a pivotal moment as it seeks to attract new listings and bolster its reputation amid economic challenges and shifting market dynamics. Over the past two decades, the JSE has grappled with a steady stream of delistings and a scarcity of new entrants, but there are signs of revival as key players consider joining its ranks.

Recent Listings and Trends

In 2024, the JSE saw notable listings, including WeBuyCars, Rainbow Chicken, and Boxer. However, these weren’t traditional new listings but rather unbundlings from their parent companies—Transaction Capital, RCL Foods, and Pick n Pay, respectively. Unbundlings have emerged as a dominant theme, driven by companies seeking to unlock shareholder value in a sluggish economy.

Speaking at the Boxer listing launch, Sam Mokorosi, Head of Origination and Deals at the JSE, highlighted how shareholder pressure and slow economic growth, projected at just 1% in 2024, often prompt companies to unbundle. This restructuring reflects broader corporate strategies to adapt to challenging market conditions while maximizing returns for investors.

Economic Factors at Play

South Africa’s economic environment is both a challenge and a catalyst for the JSE. On the positive side, declining inflation and a favorable interest rate outlook are fostering optimism. However, structural economic issues and stagnant growth remain significant obstacles. Mokorosi noted that companies are waiting for the perfect alignment of conditions—strong performance and a robust market—to make the decision to list. Timing is critical, as companies typically aim to go public around their interim or final results to capitalize on investor confidence.

International Collaboration and Opportunities

The JSE is also looking beyond South African borders to drive growth. It has formed partnerships like its Memorandum of Understanding (MOU) with Saudi Arabia’s Tadawul Group, the parent company of the Saudi exchange. This collaboration paves the way for dual listings and increased global exposure.

Foreign companies have also shown interest in the JSE. For instance, UK-based Assura, a healthcare-focused real estate investment trust (REIT), recently listed on the exchange. Managing a portfolio valued at £3.2 billion (R75 billion) across over 600 healthcare facilities, Assura’s move underscores the JSE’s appeal to international investors seeking access to Africa’s capital markets.

Future Listings on the Horizon

While the JSE is making progress, it continues to face a mixed outlook. Companies like Coca-Cola Beverages Africa and Fidelity ADT have expressed interest in listing, while Africanbank has postponed its plans from 2025 to at least 2027. Meanwhile, TymeBank has announced its intentions to pursue a dual listing on the JSE and the New York Stock Exchange in 2028.

Despite this, challenges persist. Embattled financial services company Sasfin is set to delist, reflecting the ongoing difficulties faced by some firms operating in South Africa’s uncertain economic climate.

The JSE is taking proactive steps to remain competitive and relevant. Its focus on attracting international listings and fostering collaborations highlights its adaptability. Furthermore, the exchange’s efforts to sell South Africa’s liquid capital markets as a strong investment destination are likely to attract more foreign interest over time.

As Mokorosi put it, companies are waiting for the “stars to align” before committing to listings. With economic optimism slowly building and strategic partnerships in place, the JSE may soon find itself at the center of a new era of growth.

The Johannesburg Stock Exchange’s journey is one of resilience, adaptation, and cautious optimism. It remains to be seen whether the current momentum will translate into a sustained revival, but the groundwork is being laid for a brighter future in South Africa’s capital markets.

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