JSE Requirements

The JSE requirements set the foundation for companies seeking to list on the Johannesburg Stock Exchange and are crucial for ensuring they qualify and remain compliant. These requirements are applicable to both primary and secondary listings and include criteria both foreign and domestic companies must meet.

Key JSE Requirements for Main Board Listing

Subscribed Capital

To list on the JSE Main Board, applicants must have a minimum subscribed capital of R50 million. This amount includes reserves but specifically excludes minority interests and certain revaluations of assets.

Equity Securities in Issue

A minimum of 25 million shares must be in issue. This ensures that there is enough public interest and potential liquidity for the securities being listed.

Public Shareholding

At least 10% of each class of securities should be held by the public at all times. This requirement is crucial for maintaining the liquidity of the shares in the market.

Profit History

Applicants need to provide audited financial statements for the last three years. The most recent report must indicate a profit of at least R15 million before tax and after headline earnings adjustments. This showcases the financial stability and viability of the company to potential investors.

Main Activity

The applicant or its subsidiaries should have a history of running an independent business, supported by generated revenue over the last three years. Moreover, the company must have control over the majority of its assets, ensuring it is operating primarily from its capabilities.

Listing Document

A comprehensive listing document is required. This must include historical financial information, covering statements of comprehensive income, financial position, changes in equity, cash flows, accounting policies, and segmental information for the past three years.

Trading in South African Rand

Securities listed on the JSE must be traded and settled in South African Rand, even if they are denominated in other currencies. This ensures seamless local market transactions. Interestingly, there are no explicit share lock-up or escrow requirements.

Compliance with Laws

Applicants must comply with relevant South African laws and obtain the necessary statutory or regulatory approvals. This compliance ensures that the company adheres to all legal and regulatory frameworks essential for operating within South Africa.

Special Considerations for Development-Stage Companies

For companies that do not possess the required profit history, the JSE can exercise discretion to allow such development-stage companies to list provided they have at least R500 million in subscribed capital and have existed for at least 12 months.

Alternative Exchange and Specialist Securities

The JSE also offers an Alternative Exchange (AltX) for smaller and medium-sized companies that may not meet Main Board requirements. Additionally, the regulatory framework for specialist securities and depository receipts has seen updates, with new provisions introduced to enhance clarity and compliance.

Ensuring companies meet these JSE requirements secures both the integrity of the market and the interests of investors. As of recent changes, these guidelines reflect a modernized approach aligning with global standards.