Zim companies urged to list on JSE

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Zim companies urged to list on JSE

THE SouthernTIMES Mar 20, 2018

    Business Writer

    Zimbabwean companies have been urged to list on the Johannesburg Stock Exchange (jse), which provides great opportunities for blue-chip firms to attract investment and grow their tentacles.  

    The JSE is currently ranked the 19th largest stock exchange in the world by market capitalisation and the largest exchange in the African continent.

    With a market capitalisation of US$995 billion (as of March 2017), the JSE is also seen as a fulcrum for companies seeking to have footprints in the broader Southern Africa Development Community region, as it offers an opportunity to access capital for debt and equity.

    In a presentation during a plenary session at the Zimbabwe Mining Investment Conference in Harare on Tuesday, JSE business development manager for primary markets Patrcja Kula-Verster said joining the JSE can lead to game-changing developments for mining companies from Zimbabwe.

    “It will be fantastic to have mining companies from Zimbabwe listing on the JSE. We have had companies from Zimbabwe- which have listed with us. Most recently, it was Brainworks (a Zimbabwean equity investment firm) which listed with us. Hopefully, we can have more companies from Zimbabwe doing the same, particularly those companies that are into mining,” she said.

    Kula-Verster said the key to successfully listing on the JSE is engaging with investors.

    “The catch to listing it to speak with investors first and get them to understand what capital you need and how you intend to make use of that capital.

    “Investors in South Africa are definitely willing to invest in Zimbabwe’s companies, particularly if they are mining companies because Zimbabwe’s mining sector is highly regarded,” she said.

    Kula-Verster said there have only been a few companies that have been denied listing on the JSE, as the catch is to have all the requirements in place, such as the required subscribed capital as well as meeting the conditions set by South Africa’s Reserve Bank.

    In October 2017, Brainworks became the first Zimbabwean company to list on the JSE main board under the Equity Investment Instruments sector, with the firm making its debut through a market capitalisation of about R1 billion.

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