Euronext has recently joined forces with the Johannesburg Stock Exchange (JSE) in a dual-listing initiative that aims to simplify and expedite the process for companies seeking to list on multiple exchanges. This move by Euronext aligns with its strategic goal of enhancing dual- and multi-listing procedures, providing companies with access to increased liquidity, a broader investor base, better price discovery, and extended trading opportunities.
With over 1,900 companies currently listed on Euronext, boasting a collective market capitalization of €6.3 trillion, the collaboration with JSE is expected to foster capital flows, broaden market reach for issuers, and offer investors a more diverse range of investment options. Mathieu Caron, Euronext’s head of primary markets, emphasized the potential for this partnership to invigorate the capital markets in both Europe and South Africa.
The JSE’s fast-track listing route, designed to promote dual listings, allows companies already listed on partner exchanges for over 18 months to list on the JSE Main Board or Alternative Exchange with a pre-listing announcement instead of a prospectus. This streamlined process not only reduces listing fees and resource requirements but also ensures that essential information about the company is readily available to potential investors.
Maurice Madiba, the head of primary markets at JSE, highlighted the benefits of the fast-track listing route, emphasizing its role in easing the regulatory burden and facilitating secondary listings in South Africa. Rene van Vlerken, CEO of Euronext Amsterdam, underscored the mutual commitment shared by Euronext and JSE to strengthen ties between the two exchanges, thereby benefiting issuers, partners, and the respective economies.
Since its inception in 2014, the fast-track listing initiative has garnered support from 29 other exchanges, including the London Stock Exchange (LSE), Australian Securities Exchange (ASX), and New York Stock Exchange (NYSE). Presently, the JSE hosts 126 dual- or multiple-listed stocks, with plans to incorporate the Saudi Exchange (Tadawul) into its secondary listing framework in the near future.
The collaboration between Euronext and JSE underscores a broader trend in the financial industry towards facilitating cross-border listings and enhancing market accessibility for companies seeking to expand their investor base globally. By leveraging the strengths of each exchange and streamlining listing processes, such initiatives contribute to the vibrancy and efficiency of capital markets on a global scale.
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