FSE Listings vs JSE Listings: Why are South African companies avoiding the South African economy and US by listing on European Exchanges such as the Frankfurt Stock Exchange?
FSE Listings: Why are South African companies avoiding the South African economy and US by listing on European Exchanges such as the Frankfurt Stock Exchange?
- Listing on the JSE (Johannesburg Stock Exchange) is cost prohibitive, as is the AltX which is up to 300,000 euro (3,000,000 rand) per annum to maintain
- Qualifications to list on the JSE and AltX would take most South African firms years to qualify for and list. Most sponsors tell firms to list overseas for this reason and turn away the attempt to even stay local for South African firms.
- Frankfurt Stock Exchange listings are built for new to mid-size ventures, junior IT, junior Mining, and Junior Energy companies looking to find foreign investment
- FSE Listings only cost 60-100k euro, that is 600,000 to 1,000,000 rand to list
- FSE Listings take 3-6 weeks from submission to the exchange
- South Africa lacks a formalized Over the Counter market of an unlisted market
- JSE and AltX shares are illiquid, and is considered a monopolistic market with a lack of venture capital as a whole
- The Frankfurt Listings allow global venture capital investment and opens up the trading to thousands of traders and brokers to take part globally with no reserve bank or clearing system challenges (List in Frankfurt, go Global!)
- South Africa has a good economy which is attractive to foreign investors in Europe, however, private investments are too risky, the JSE is not liquid and foreign, while the Frankfurt Stock Exchange is local to Europe and provides a standard of care the foreign investors require or are familiar with. (Frankfurt Listings give foreign investors a local place to trade without controls or concerns.)
- The Deutsche Boerse Group with the recent merging of the NYSE makes the exchange the largest Stock Exchange Group in the World and the most attractive global market for South African’s to list.
What is the next step for a South African Company?
Contact us today to qualify your firm for listing on the Frankfurt Stock Exchange, Russell@fselistings.com
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