Euronext has joined the Johannesburg Stock Exchange’s (JSE) fast-track listing route as it follows its objective of streamlining dual- and multi-listing processes.
Dual listing allows companies to access more liquidity and capital, target a wider investor base, improve price discovery and potentially gain more trading time by listing their shares across multiple exchanges.
More than 1,900 companies list on Euronext, with an approximate market cap value of €6.3 trillion. Through its partnership with the JSE, Mathieu Caron, head of primary markets at Euronext, told Global Trading: “We hope to stimulate capital flows and provide issuers with a broader market reach while empowering investors with more diversified options. This collaboration will contribute to a more dynamic capital market environment across Europe and South Africa.”
The JSE’s fast-track listing route aims to encourage the practice, allowing companies listed on partner exchanges for more than 18 months to list on the JSE Main Board or Alternative Exchange with a pre-listing announcement, rather than a prospectus. This reduces listing fees and resource use for new and dual listings, the JSE stated, while ensuring that relevant information about the company is accessible before investments are made.
Maurice Madiba, head of primary markets at the JSE, said: “A major advantage of being part of the fast-track universe is that we can reduce the overall regulatory burden, ideally facilitating more secondary listings in South Africa.”
Rene van Vlerken, CEO of Euronext Amsterdam, added: “The decision by JSE to recognise Euronext for the JSE’s fast-track process was motivated by a common commitment to develop strong ties between Euronext and the JSE, benefitting issuers, partners, as well as the respective capital markets, and economies.”
Since its establishment in 2014, 29 other exchanges have joined the ecosystem, including the LSE, ASX and NYSE. Currently, 126 dual- or multiple-listed stocks are listed on the JSE. Looking forward, the JSE has shared its intentions to next add the Saudi Exchange (Tadawul) to its secondary listing framework.
©Markets Media Europe 2024
