Companies in South Africa waiting for ‘stars to align’

The Johannesburg Stock Exchange (JSE) hopes that more companies will list on the bourse in the near future, but it admits that companies only enter when it suits their needs.

Over the last two decades, the JSE has seen hundreds of delistings, and new listings have been in short supply.

However, amid the increased optimism over the future of the South African economy following the formation of the Government of National Unity (GNU), declining inflation and an improved interest rate outlook.

In 2024, several new companies were listed on the JSE, notably WeBuyCars, Rainbow Chicken, and Boxer.

However, major listings were all unbundlings from JSE-listed companies – WeBuyCars from Transaction Capital, Rainbow Chicken from RCL Foods and Boxer from Pick n Pay.

Speaking to BusinessTech at the Boxer listing launch, Sam Mokorosi, Head of Origination and Deals at the JSE, said unbundlings are a theme.

Mokorosi said that the economy’s lack of growth (expected to be around 1% in 2024) has forced many companies to unbundle to unlock value for shareholders. He noted that shareholders can often lead to an unbundling process.

When it comes to new listings shortly, he noted that several companies have expressed interest in listing, such as Coca-Cola Beverages Africa and Fidelity ADT.

However, he stressed that companies are waiting for the best time to list on the market, with the stars needing to align for companies to become public.

He said that companies would want to list when both they are performing well and the market is strong.

They also have a narrow window to list, which is usually around their interim and final results.

Pipeline

Despite this, Mokorosi said that more companies have shown interest in joining the JSE, particularly some foreign companies.

He said that property real estate investment trusts (REITs) from the UK often receive a warm welcome in South Africa.

For instance, UK-based Assura is listed on the JSE this month. The healthcare REIT manages over 600 healthcare buildings and services over six million patients annually. Its portfolio is valued at £3.2 billion (R75 billion).

The JSE also has signed an MOU with the Saudi Taduwal Group, the parent company of the Saudi exchange, which will see the two bourses collaborate on dual listings.

The JSE recently hosted the Deputy Minister of Commerce from Saudi Arabia, Eman bin Habbas Al-Mutairi, and the JSE executive is also planning a trip to the oil-rich nation.

Mokorosi noted that the company has attempted to sell South Africa’s liquid capital markets and is looking for good partners. It previously singed

Regarding notable future listings of South African companies, Africanbank has delayed its listing from 2025 to at least 2027.

TymeBank also plans to list on the New York Stock Exchange (NYSE) and the Johannesburg Stock Exchange (JSE) in 2028.

However, there are signs of future delistings, with the embattled Sasfin set to delist.

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