JOHANNESBURG, April 2 (Reuters) – The Johannesburg Stock
Exchange is scrapping its separate board for sub-Saharan
companies, after the three-year programme met with lacklustre
demand from African firms more interested in listing in London.
The JSE Ltd, which operates Africa’s biggest
bourse, said on Monday it will now place sub-Saharan corporates
directly onto its main board, or its AltX for smaller companies.
Previously companies on the African board were cordoned off
from their South African rivals and did not appear in indexes
based on individual industries.
Launched in 2009, the Africa board failed to gain traction
among sub-Saharan corporates, bringing in just two companies. In
total about 20 African firms are listed on the JSE.
The JSE is aiming to position itself as a gateway to
Africa’s fast growing capital markets, but bankers say it faces
a tough battle from London, which is seen as a more prestigious
destination.
More than 100 African companies are currently listed on the
London Stock Exchange, with the majority of those on the
AIM market for smaller firms. Their combined market value is now
bigger than every African exchange except Johannesburg.
Separately, South African direct marketing retailer
HomeChoice said it plans to list on the Johannesburg bourse in
the second half of this year.
HomeChoice, which sells homewares and personal loans, said
the listing would help it raise money to fund expansion.
The company reported earnings per share rose 34.7 percent to
237.4 cents in year to end December on sales totalling 1.1
billion rand ($143.33 million).
(Reporting by David Dolan and Tiisetso Motsoeneng, editing by
Ed Stoddard)
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