DURBAN - JSE Limited, the operator of the Johannesburg Stock Exchange (JSE), has entered a transaction with next generation UK fintech company, Globacap Technology Limited (Globacap) to progress a digital private placements platform and registry services.
The deal brought together the JSE, which is Africa’s largest Stock Exchange, and Globacap, a leading regulated private placement and capital management platform that digitally administers more than £1 billion (R20.6bn) of private shares and debt instruments for 60 companies and more than 8 000 shareholders worldwide in 35 countries. Globacap’s distributed ledger technology allows digital registrar services to be reflected in real time.
JSE Group chief executive Leila Fourie said that the JSE would collaborate with Globacap to establish a private placements platform to advance and digitise capital raising for infrastructure finance and small medium enterprises (SMEs).
“The deal with Globacap will support a critical growth node across the continent in the infrastructure and SME sectors. The transaction reinforces the JSE’s commitment to foster inclusive and sustainable growth by advancing access to capital markets,” said Fourie.
Director Capital Markets Valdene Reddy said the JSE would use Globacap’s innovative technology and expertise to progress infrastructure finance and SME private funding.
“The deal will help stimulate investment into those markets by narrowing the funding gap and supporting job creation and economic growth,” said Reddy.
As part of the transaction and reaffirming the JSE’s growth strategy, the Exchange will invest £4 million for a minority equity stake in Globacap.
The investment in Globacap would be funded from the group’s existing cash reserves and was expected to be finalised during the first quarter of 2021. The transaction was subject to the fulfilment of certain conditions precedent including approval by relevant local and UK authorities.
Fourie said that the Globacap collaboration and investment was part of the JSE’s ongoing strategy to sustainably grow and diversify the business.
“Working with a leading capital markets fintech player positions the JSE well in our efforts to innovate a digital capital raise process in private placements.”
Globacap chief executive Myles Milston said this was an incredible project in a vast and growing market.
“We are excited to be part of it, to launch both platforms with the JSE and for the JSE’s investment into Globacap, representing a milestone in our progress. The deployment of our technology with such an established public market as the JSE moves us one step closer to realising our goal of the digitisation of the world’s private capital markets,” said Myles.
BUSINESS REPORT