Targeting both listed and unlisted entities
The JSE have announces that its wholly owned subsidiary, JSE Private Placements (JPP), has obtained a financial services provider licence, which will facilitate innovation and growth in private capital raise, in both equity and debt.
JPP offers services to private entities looking to raise debt or equity through an automated and digitised platform. The online solution will connect private companies and issuers directly to investors, enabling private capital formation in a more transparent, efficient and accessible manner. Investors can access an array of potential deals that meet their investment criteria as well as track history of previous placements and deals, providing much-needed visibility in this fast growing segment of the market.
“We are delighted with this milestone,” says JSE Group CEO Leila Fourie. “With JPP, we are building a future-fit capital market that delivers a seamless digital marketplace that pairs up private debt and equity issuers with investors, including venture capital funders,” she explains.
“Our engagements with institutional investors and private companies suggest that the market is eager for this service because of the efficiencies it will introduce,” says Valdene Reddy, Director of Capital Markets.
The JSE has been in discussion with private equity investors, venture capital firms, lenders, development finance institutions and advisory firms representing private companies and investors. “JPP intends to simplify, automate and streamline the private capital raising process”, says Fourie.
JPP’s private market services are offered in association with Globacap, a UK-based capital markets technology company in which the JSE owns a minority stake. Globacap has standardised the securities landscape, enabling frictionless asset creation and transferability. Over $10 billion of private share and debt instruments are digitally managed on their platform for over 80 companies and 4,300 investors.
Myles Milston, Globacap’s CEO, says; “At Globacap, we’ve been building technology to unlock the potential of capital markets in the digital age. We are excited to work with the JSE on these leading-edge projects and believe these advances will have a significant impact on South Africa’s economic growth, while positioning JPP as a market leader in digital private placements.”
Private markets continue to show phenomenal growth in capital formation and allocation. The Covid-19 pandemic caused immense financial distress, increasing demand for funding. Reddy says, “JPP will focus on South African SME and infrastructure funding and will extend its services to the rest of the African continent in due course.”
“JPP is a high-priority undertaking that is central to the group strategy to sustainably grow and diversify the JSE, in response to an evolving market environment. This initiative is an opportunity to stimulate investment into South Africa, contributing to job creation and economic growth,” says Fourie.
“The JPP platform benefits both private companies and investors and will be a valuable growth enabler for SA Capital Markets,” concludes Reddy.