South Africa's stock exchange, the JSE, has joined the ranks of the
companies listed on its boards as it too listed on Monday.
This move sees it join international markets such as the London Stock Exchange, the New York Stock Exchange, Deutsche Borse, Nasdaq, Euronext, the Australian Stock Exchange, the Singapore Exchange and the Hong Kong Exchanges and Clearing, which are listed on their own boards.
A celebratory event held on Monday morning, just before the market officially opened, was attended by Deputy President Phumzile Mlambo-Ngcuka, past chairpersons of the bourse, as well as current staff members and their families.
Guests at the 'morning party' were asked to wear hats, a throwback to the celebration of the cessation of floor trading, and even Mlambo-Ngcuka complied with this request.
“I'm here just to take my hat off for the JSE,” she quipped, before congratulating it on the milestone.
She added that the listing was indicative of growth in the country, and growth in listed companies on the bourse, which aims to be the primary listing of choice, even for offshore companies.
Some 40 000 trades a day take place on the exchange, the 16th largest worldwide with a market capitalisation of R4,2-trillion.
CEO Russell Loubser told Engineering News Online that the 83-million shares in the JSE would become available for trading, although the listing was not a capital-raising exercise.
He pointed out that the bourse had been conducting itself like a listed company for six years, and had imposed all the listed company obligations on itself, without any of the benefits.
Loubser quipped that the market would open promptly, unless “Murphy organises a technical glitch”.
Just after 09:00, JSE shares officially opened at R26, with five trades being made by the time Loubser pointed out the new price, which was received with a loud cheer.
“For those of you who haven't seen we have had five trades, the price is R26 a share.”
Streamers and hat-throwing marked the opening of trade, along with Loubser blowing the kudu horn.
The blowing of the kudu horn is an African tradition to signify the welcoming of a dignitary or other ceremonial event.
Shares closed on Friday at R25 and before 09:00, when trading started, several bids and offers were on the board.
However, by 11:30, some of the party fever seemed to have worn off and shares were trading at R24,90, 4,23% of the day's high of R26.
“For the JSE, the listing brings with it an opportunity to both showcase itself to investors as a well-governed company as well as the opportunity to broaden our shareholder base through a broad-based black economic-empowerment initiative that was integral to the listing,” said Loubser.
The broad-based BEE initiative consists of two parts: firstly, the Black Shareholder Retention Scheme, aimed at retaining existing black shareholders, and secondly, the JSE Empowerment Fund (JEF), aimed at funding education for black people wanting to work in the financial-services industry.
These initiatives will raise the JSE's direct black shareholding to over 10%. “This is a historical and very proud moment for South Africa and for the JSE. This listing firmly entrenches the JSE's commitment to transformation and allows us to lead by example in every aspect of corporate life, including black economic empowerment, as a critical consideration in the social landscape of South Africa today,” said chairperson Humphrey Borkum.
“It has taken ten years of hard work to get the JSE to a stage where it can proudly stand up and be counted amongst its peers as a listed company,” said Loubser.
“But if you had to ask any of my team, they'd tell you without hesitation that it's been worth the wait.”
A year ago, the 119-year-old bourse demutualised as a step in its plan to list, an idea conceptualised ten years ago.
The JSE dates its existence back to 1887; a year after gold was discovered on the Witwatersrand.
Its website says that “the first share transactions took place in a miner's tent in Ferreira's Camp, the mining camp that was to become the forerunner of the city of Johannesburg”.
Little more than a year later, on November 8, 1887, a meeting of the Johannesburg Exchange and Chambers Company, formed with a capital of
This move sees it join international markets such as the London Stock Exchange, the New York Stock Exchange, Deutsche Borse, Nasdaq, Euronext, the Australian Stock Exchange, the Singapore Exchange and the Hong Kong Exchanges and Clearing, which are listed on their own boards.
A celebratory event held on Monday morning, just before the market officially opened, was attended by Deputy President Phumzile Mlambo-Ngcuka, past chairpersons of the bourse, as well as current staff members and their families.
Guests at the 'morning party' were asked to wear hats, a throwback to the celebration of the cessation of floor trading, and even Mlambo-Ngcuka complied with this request.
“I'm here just to take my hat off for the JSE,” she quipped, before congratulating it on the milestone.
She added that the listing was indicative of growth in the country, and growth in listed companies on the bourse, which aims to be the primary listing of choice, even for offshore companies.
Some 40 000 trades a day take place on the exchange, the 16th largest worldwide with a market capitalisation of R4,2-trillion.
CEO Russell Loubser told Engineering News Online that the 83-million shares in the JSE would become available for trading, although the listing was not a capital-raising exercise.
He pointed out that the bourse had been conducting itself like a listed company for six years, and had imposed all the listed company obligations on itself, without any of the benefits.
Loubser quipped that the market would open promptly, unless “Murphy organises a technical glitch”.
Just after 09:00, JSE shares officially opened at R26, with five trades being made by the time Loubser pointed out the new price, which was received with a loud cheer.
“For those of you who haven't seen we have had five trades, the price is R26 a share.”
Streamers and hat-throwing marked the opening of trade, along with Loubser blowing the kudu horn.
The blowing of the kudu horn is an African tradition to signify the welcoming of a dignitary or other ceremonial event.
Shares closed on Friday at R25 and before 09:00, when trading started, several bids and offers were on the board.
However, by 11:30, some of the party fever seemed to have worn off and shares were trading at R24,90, 4,23% of the day's high of R26.
“For the JSE, the listing brings with it an opportunity to both showcase itself to investors as a well-governed company as well as the opportunity to broaden our shareholder base through a broad-based black economic-empowerment initiative that was integral to the listing,” said Loubser.
The broad-based BEE initiative consists of two parts: firstly, the Black Shareholder Retention Scheme, aimed at retaining existing black shareholders, and secondly, the JSE Empowerment Fund (JEF), aimed at funding education for black people wanting to work in the financial-services industry.
These initiatives will raise the JSE's direct black shareholding to over 10%. “This is a historical and very proud moment for South Africa and for the JSE. This listing firmly entrenches the JSE's commitment to transformation and allows us to lead by example in every aspect of corporate life, including black economic empowerment, as a critical consideration in the social landscape of South Africa today,” said chairperson Humphrey Borkum.
“It has taken ten years of hard work to get the JSE to a stage where it can proudly stand up and be counted amongst its peers as a listed company,” said Loubser.
“But if you had to ask any of my team, they'd tell you without hesitation that it's been worth the wait.”
A year ago, the 119-year-old bourse demutualised as a step in its plan to list, an idea conceptualised ten years ago.
The JSE dates its existence back to 1887; a year after gold was discovered on the Witwatersrand.
Its website says that “the first share transactions took place in a miner's tent in Ferreira's Camp, the mining camp that was to become the forerunner of the city of Johannesburg”.
Little more than a year later, on November 8, 1887, a meeting of the Johannesburg Exchange and Chambers Company, formed with a capital of
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