The Johannesburg Stock Exchange (JSE) has seen significant increases in share sales since 2005, resulting from South African enterprises driving sales to propel the economic standard of the continent forward, Bloomberg reported.
According to the Director of capital markets at the JSE, Donna Oosthuyse, South Africa wants to triple its clean power generation through an initiative valued at US$12 billion. This will put the JSE in a favourable position to generate interest from renewable energy firms.
‘The whole renewable energy space and the energy space in general might be an interesting space for listings. We’ve had a lot of companies and advisers approach us to talk about the ways that renewable energy equity investors can exit through listing or raise additional capital through a listing’, Oosthuyse said.
According to data provided by the JSE, Africa’s biggest bourse increased to US$13 billion (58%) in 2014.
Oosthuyse said that ‘a lot of companies raised capital so they could do acquisitions in other markets. The rate of economic growth in South Africa is below what our corporates are seeing in some other markets’.
It is imperative to stay abreast of foreign affairs, especially US interest rates, as international investors are responsible for 30-40% of activity on the JSE, Oosthuyse told the media.
Last week, the US Federal Reserve remained relaxed over raising interest rates resulting in soaring global equities, which were trading on the JSE at a high of ZAR53 billion on 18 December 2014, the Bourse told media in a statement.
‘We still do have a pipeline of listings to come. A lot of it is going to depend on where the values are in the exchange and what the general economic sentiment is and how corporate leaders are looking at their own growth prospects’, Oosthuyse added.
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