{"id":206765,"date":"2017-10-23T10:05:30","date_gmt":"2017-10-23T08:05:30","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=206765"},"modified":"2017-10-23T10:05:30","modified_gmt":"2017-10-23T08:05:30","slug":"spinoffs-drive-new-listings-on-the-jse","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/business\/206765\/spinoffs-drive-new-listings-on-the-jse\/","title":{"rendered":"Spinoffs drive new listings on the JSE"},"content":{"rendered":"

South Africa\u2019s main stock exchange may witness the most new listings for at least two years in 2017, helped by a spate of spinoffs as owners look to tap a market trading near record highs.<\/p>\n

Of the 18 debuts this year, six are carved out of other companies, most of which are publicly traded. A further four new arrivals are backed by collections of investment holdings, rather than providing a direct bet on any single business.<\/p>\n

\u201cIt\u2019s simply a function of trying to crystallize value with the high valuations that the companies are seeing,\u201d said Grant Cullens, who helps oversee $1.3 billion as chief executive officer of African Alliance Asset Management in Johannesburg.<\/p>\n

\u201cIt\u2019s better to do that when the market is up here, rather than when it\u2019s down 200 or 300 points lower.\u201d<\/p>\n

South Africa\u2019s benchmark stock index gained 0.1% to 58,000.36 by 9:15 a.m. in Johannesburg Monday. It has clocked eight records in October, shaking off the restraints of weak economic growth and a divisive leadership contest within the ruling African National Congress.<\/p>\n

With the final quarter traditionally a busy one for new listings, the exchange expects more companies to seek to make the most of the biggest stock gains since 2013.<\/p>\n

\u201cIf you ask me what the common theme is, if you further analyze the listings for this year, I would say it would definitely be the spinoffs,\u201d\u00a0said Patrycja Kula-Verster, business development manager in the primary markets division at JSE Ltd., operator of the bourse.<\/p>\n

Listings are proving a popular alternative to tapping private equity for companies seeking funds, Kula-Verster said in an interview. It\u2019s a step that can provide a permanent source of capital, without the defined time horizons that accompany private equity deals, while also offering scope for follow-on raisings, she said.<\/p>\n

This year\u2019s spinoffs that now trade on the exchange:<\/p>\n

Premier Fishing & Brands Ltd., unbundled from African Equity Empowerment Investments, in March Sea Harvest Group, spun off from Brimstone Investment Corp, in March Master Plastics, unbundled from Astrapak, in May Kaap Agri spun off from unlisted holding company Kaap Agri Bedryf, in June Steinhoff Africa Retail, unbundled from Steinhoff International Holdings, in September Stadio Holdings, spun off from Curro Holdings Group, in October<\/span><\/p>\n

Investment holding and special purpose acquisition company listings in 2017:<\/p>\n

Long4Life, in April RH Bophelo, in May African Rainbow Capital Investments, in September Brainworks, in October <\/span>4Sight Holdings, which also houses investments, marked the 18th listing on the exchange on Oct 19, two days after the benchmark set its latest record high.<\/p>\n

The positive sentiment suggests this is a good time to come to market, said African Alliance\u2019s Cullens. \u201cAnd why wouldn\u2019t you? Because you don\u2019t really know how much longer it\u2019s going to last,\u201d he said.<\/p>\n

\"\"<\/a><\/p>\n

\n

Read: 4Sight lists on the JSE<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

South Africa\u2019s main stock exchange may witness the most new listings for at least two years in 2017, helped by a spate of spinoffs as owners look to tap a market trading near record highs.<\/p>\n","protected":false},"author":59,"featured_media":206769,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9872],"tags":[175],"class_list":["post-206765","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-jse"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/206765","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/59"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=206765"}],"version-history":[{"count":1,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/206765\/revisions"}],"predecessor-version":[{"id":206771,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/206765\/revisions\/206771"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/206769"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=206765"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=206765"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=206765"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}