THE JSE can welcome two new counters to the exchange after a seeing numerous delistings in the past few years: Southern Palladium, a palladium explorer and developer, and CA Sales, which operates within the fast-moving consumer goods industry and deliver services to blue-chip manufacturers, both locally and internationally.
The JSE has roughly 314 listings. Last year, it lost 25 listings; in 2020, a total of 20 companies delisted; and, in 2019, there were 24 delistings as companies cited the hight cost of compliance.
Earlier this year, a report by professional services firm PwC found the reduction of initial public offerings and capital raising in 2021 indicated that Africa may be falling behind the international market’s ability to leverage the private sector in order to create investment and wealth.
Investor relations experts speculated the reasons for the exodus to be low valuations and high cost related to corporate actions, PwC said.
Southern Palladium said yesterday that it was finally listing on the JSE main board tomorrow, following a delay in its secondary listing.
Last month, the Australian junior miner delayed the secondary listing on the JSE after it said it was waiting for a revised date from the Australian Stock Exchange (ASX), where it would have a primary listing.
"The JSE has granted a secondary listing of the ordinary shares of the company on the main board subject to the primary listing of the shares on the Australian Securities Exchange (ASX)," the company said in a statement.
The company had applied to the JSE for its securities to be admitted to trading in the “Platinum and Precious Metals” sector.
Southern Palladium also said it acquired a 70 percent interest in South Africa’s Miracle Upon Miracle Investments Proprietary Limited (MUM). MUM owns the rights to prospect the Bengwenyama platinum group elements project.
Southern Palladium said last month that it had raised A$19m (R212m) in an initial public offering, which it would put towards its Bengwenyama project on the eastern limb of South Africa’s Bushveld Complex.
Bengwenyama is rich in palladium and rhodium and is situated south of the Modikwa PGM mine, which is jointly owned by African Rainbow Minerals and Anglo American Platinum.
The company said about 38 million of its shares were issued at a price of 50 Australian cents per share, valuing the company at A$45m (R504m).
According to the firm, it intended to develop the project over two years, and the project was aimed at delivering pre-feasibility for a significant-sized new mine, followed by the submission of a Mining Right Application.
Its near-term operational target was to convert the 15 million to 34 million ounce exploration target from an inferred resource to an indicated resource.
Meanwhile, the JSE yesterday said it had granted CA Sales a listing by “way of introduction of all its issued ordinary shares (being 461 432 502 ordinary shares of no par value) on the Main Board of the JSE under the abbreviated name “CA Sales”, share code “CAA” and ISIN ZAE400000036 in the “Diversified Retailers” sector with effect from the commencement of trade on 27 June 2022“.
The firm's service offering includes selling, merchandising, warehousing, distribution, debtors administration, marketing & promotions, point of sale warehousing and training.
It has offices and facilities in all the main centres throughout Botswana, Swaziland, Namibia, South Africa, Lesotho, Zimbabwe and Zambia.
CA Sales was incorporated in 2011 as a private holding company in South Africa and converted into a public company on August 11, 2017. Its underlying investments include older well-established businesses across Southern Africa.
The rationale for the listing was to increase the profile of the company with South African based retail and institutional investors and to create a platform to raise equity capital to the extent required in the future.
The group’s objective is to grow revenue in the next five years to at least R20 billion and to expand its profit margin. It also plans to expand its African footprint with value-adding acquisitions or by starting green field operations.