JSE capital raising in 'permanent pause' as delisting wave continues

The wave of delistings plaguing the Johannesburg Stock Exchange (JSE) continues unabated, reducing the universe of investments available to South African asset managers and raising questions about the local bourse's suitability as a capital-raising platform, especially for small to mid-cap companies.

The JSE suffered 22 delistings in 2023, down only slightly from the 25 delistings that occurred in 2022, according to data supplied to News24 by the bourse operator. That left the exchange with 284 listed companies by end-2023, down from 304 at end-2022. While the JSE had five new listings in 2022 and two in 2023, the rate at which companies are fleeing the exchange still far outweighs those seeking to use it as a viable capital raising platform.

"The JSE for capital raising purposes is in permanent pause mode at the moment," says Peter Armitage, CEO of Anchor Capital, which also delisted in early 2021.