Larry Claasen
3 minute read
12 Oct 2020
6:26 am

How the JSE’s role has changed over the last 20 years

Larry Claasen

Using shares as a means of payment in lieu of cash has worked out well for investors.

Picture: Moneyweb

Over the last 20 years, the JSE has become more of a way for big companies to unbundle non-core assets and offer staff incentives rather than fund initial public offerings (IPOs) or grow their operations. This can be seen in the number of listed companies having almost halved from 612 to 342 in the two-decade period. Another indication of this trend can be seen in figures derived from the South African Reserve Bank (Sarb) quarterly bulletins. They show that ‘other share capital’ raised of R1.5 trillion dwarfed the less than R292 billion raised through rights issues from the beginning of...