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Trading begins on the new Cape Town Stock Exchange


CAPE TOWN | The CEO of the Cape Town Stock Exchange, Eugene Booysen, rang the bell to begin trading on the Western Cape’s first stock exchange in over a century. The listing costs on the Johannesburg Stock Exchange are a third of what the new South African stock exchange is expected to charge. Despite a global wave of initial public offerings, companies in Africa’s most industrialized nation, particularly smaller ones, have been de-listing from South Africa’s main exchange.

  • Eugene Booysen, CEO of the Cape Town Stock Exchange, rang the bell to begin trading on the Western Cape’s first stock exchange in over a century.
  • During the session, TWK, the eighth company to list on the CTSE, was also introduced.
  • The listing costs on the Johannesburg Stock Exchange are a third of what the new South African stock exchange is expected to charge, luring companies from across the continent.
  • Despite a global wave of initial public offerings, companies in Africa’s most industrialized nation, particularly smaller ones, have been de-listing from South Africa’s main exchange in recent years due to high costs and onerous compliance requirements.
  • The Cape Town Stock Exchange has been using technology to reduce listing costs in order to compete with A2X and ZarX.In contrast to the Johannesburg Stock Exchange, only the Cape Town Stock Exchange will be able to trade equity and debt for companies (JSE).
  • Despite the fact that private equity has been successful in identifying growth companies, according to Booysen, the South African exchanges have failed to bring them to market.

Eugene Booysen, CEO of the Cape Town Stock Exchange, rang the bell to begin trading on the Western Cape’s first stock exchange in over a century. During the session, TWK, the eighth company to list on the CTSE, was also introduced.

The listing costs on the Johannesburg Stock Exchange are a third of what the new South African stock exchange is expected to charge, luring companies from across the continent.

Despite a global wave of initial public offerings, companies in Africa’s most industrialized nation, particularly smaller ones, have been de-listing from South Africa’s main exchange in recent years due to high costs and onerous compliance requirements.

The Cape Town Stock Exchange has been using technology to reduce listing costs in order to compete with A2X and ZarX. “We reduce the cost, risk, time and complexity for companies looking to list,” said Booysen. “This, and owning our technology, enables us to target small and medium firms of between R25 million ($1.7 million) to R2 billion market capitalization.”

In contrast to the Johannesburg Stock Exchange, only the Cape Town Stock Exchange will be able to trade equity and debt for companies (JSE). According to him, the exchange was able to get approval for its debt listing rules last year and will begin trading in debt in October.

Despite the fact that private equity has been successful in identifying growth companies, according to Booysen, the South African exchanges have failed to bring them to market.

Lender with no physical locations TymeBank, which is backed by billionaire Patrice Motsepe, and Yoco, a payments company, are two of South Africa’s fastest-growing tech companies; however, neither has raised money through the equity capital markets. TymeBank raised $109 million in February at a valuation of R8 billion. Yoco received $83 million in funding in July.

New government policy allowing more private power generation, as well as increased global investment in renewable energy, should benefit local businesses. These companies may sell equity in order to raise money from investors in order to provide business to the new exchange.

According to Booysen, the Cape Town Stock Exchange and other African exchanges are discussing a revenue-sharing arrangement. According to the exchange, by the middle of 2023, shares worth 50 billion rand will be traded on the bourse, which previously traded companies with a total market value of 7 billion rand.

According to Booysen, the Cape Town Stock Exchange aspires to be Africa’s Nasdaq, attracting companies seeking capital from Kenya, Nigeria, Ghana, and other African countries.

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