Transcript Slide 1

Mine Africa 2008
Noah Greenhill
Senior General Manager: Marketing, JSE Ltd
4 March 2008
JSE – Africa’s premier exchange
Copyright© JSE Limited 2008
www.jse.co.za
Agenda
Overview of the JSE – some facts and figures
Main Board and the AltX
Dual Listings
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A brief history of the JSE
Founded in 1887
In 1995:
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Open outcry floor trading
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Settlement 7 days later or more
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Physical delivery of share certificates
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Equities only
1995: Deregulation of the JSE
1996: Introduction of order-driven, centralised, automated trading
system - JET
1997: Introduction of real-time news service for dissemination of
price sensitive information - SENS
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A brief history of the JSE
1999: Formation of STRATE
2001: Acquisition of SAFEX
2002: Move to guaranteed, contractual T+5 settlement of equity trades
2002: Replacement of JET with JSE SETS (LSE trading platform)
2003: Launch of AltX
2004: Introduction of SRI Index
2005: Launch of Yield-X
2006: Listing of JSE on Main Board
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JSE as it is today
5 Markets
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Equities – listing, trading & regulation of shares, ETFs and warrants
Equity Derivatives – SSF, index derivatives, can-do options
Agricultural Products – maize, wheat, soya and sunflowers
AltX
Yield-X
Equities and derivatives clearing
Settlement
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Own 45% of STRATE
Guarantee of equity trades
Information product sales
Technology services
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Some interesting facts and figures:
Equities (Main Board and AltX)
Primary markets again an attractive proposition
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Positive growth trend in new listings across both markets
Growth in foreign listings
700
No. Of Listed Companies
600
500
400
300
200
100
0
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All figures are as at end December 2007
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Some interesting facts and figures:
Equities (Main Board and AltX)
Capital raising opportunities suggest value for both issuers and investors
140,000
120,000
Equity Capital Raised ( RMil)
100,000
80,000
60,000
40,000
20,000
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All figures are as at end December 2007
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Some interesting facts and figures:
Equities (Main Board and AltX)
Continued strong performance in the secondary markets:
Average daily value traded up 39% (on 2006)
Average daily number of deals up 45% (on 2006)
Net foreign investment positive at R63.3 bn
3,500,000
Value Traded (R Mil)
3,000,000
VALUE
DEALS
12,000
2,500,000
10,000
2,000,000
8,000
1,500,000
6,000
1,000,000
4,000
500,000
2,000
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14,000
All figures are as at end December 2007
No Trades (000's)
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•
•
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Some interesting facts and figures:
Equities (Main Board and AltX)
Significant value received by investors:
Market capitalisation at nearly R6 trillion – JSE remains in top 20 exchanges
Solid improvement in liquidity to 45%
6,000
50
Market Cap (R bn)
Market Capitalisation
5,000
45
4,000
40
3,000
35
2,000
30
1,000
25
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Liquidity (%)
All figures are as at end December 2007
Liquidity (%)
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20
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Introduction to AltX
AltX is the JSE’s exciting market for small and medium high growth companies
Provides an alternative for raising capital
Is operated by the JSE
AltX Philosophy:
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Best practice model
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Quality controls
• Designated Adviser
• AltX Advisory Committee
• Directors Induction Programme (DIP)
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AltX facts and figures
Exceptional market performance over the last 21 months
AltX vs. All Share Index
6000
60000
AltX: 4797 points
Alsi: 28958 points
5000
4000
3000
40000
30000
3 April 06
AltX: 2000 points
Alsi: 20712 points
2000
20000
1000
10000
0
0
Alternative Exchange Index
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50000
All figures are as at end December 2007
All Share Index
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SA vs UK
Index GBP Axis
10000
Index GBP
NSJME
9000
NSJME Axis
4500
4000
3500
8000
7000
6000
3000
2500
2000
1500
5000
4000
3000
1000
500
0
-500
2000
1000
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-1000
-1500
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Dual Listing
Gain exposure to alternative shareholders.
Enjoy local knowledge, expertise and interest in your company.
Be able to use local shares for transactions.
Facilitate compliance with SA government charters on broad
based black economic empowerment.
Access to the deep and alternative pools of capital relative to
other African markets.
Keep African companies on the African continent.
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Primary Listing on the JSE
Must meet all the initial listings criteria – Main Board or AltX
Prepare pre-listing statement/prospectus – fully compliant with JSE
requirements
Financial information must be prepared in accordance with IFRS
If it is a mining/exploration company – prepare CPR that complies with
SAMREC
CPR will be reviewed by the JSE’s reader panel
JSE will be the primary regulator going forward – applicant
must comply with all JSE listings requirements
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Secondary Listing
already listed on another exchange
Is it listed on a recognised exchange?
Must meet all the initial listings criteria – Main Board or AltX
Prepare pre-listing statement/prospectus – compliant with JSE
requirements
The JSE will accept extracts of the financial information if it has been
prepared in accordance with IFRS
The JSE will not insist on the financial information being signed-off/audited
again for purposes of the listing documentation
Non-IFRS numbers – discuss with JSE – recon to IFRS
The JSE will not insist on a new CPR if it is a mining/exploration company
and it has prepared a CPR within the last six months that complies with
SAMREC/JORC/NI 43-101
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Secondary Listing
already listed on another exchange
CPR will not be reviewed by the JSE’s reader panel
CPR must be included and there must be a statement by the
competent person that there has been no material changes
If it is listed on a recognised exchange then that exchange will
take the lead in the enforcement of listings requirements on a
continuing basis
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Secondary Listing
not listed on another exchange
Must meet all the initial listings criteria – Main Board or AltX
Prepare pre-listing statement/prospectus – compliant with JSE
requirements
Financial information must be prepared in accordance with IFRS
Non-IFRS numbers – recon to IFRS
Financial information must be signed-off/audited for purposes of the listing
documentation
CPR must be prepared if it is a mining/exploration company that complies
with SAMREC/JORC/Canadian 43-101
JSE’s readers panel must review and sign-off on CPR
If it is listed on a recognized exchange then that exchange will take the
lead in the enforcement of listings requirements on a continuing basis
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Recognised Exchanges
Main Board
LSE Main Board – regulated by the UKLA
Australian Stock Exchange
Toronto Stock Exchange – Main Board
AltX
LSE Main Board – regulated by the UKLA
AIM
Toronto Stock Exchange – Main Board
Australian Stock Exchange
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Dual Listing AltX and AIM
AIM
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Primary regulator
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Sponsor
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Profit forecast
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DIP
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Fungibility
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SARB
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Conclusion
Straight-forward strategic approach: what do the issuer and
the investor want?
AltX launched in response to identified market need – will
continue to grow and develop the market
No of initiatives in the pipeline for 2008:
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Promotion of cash-settled future on AltX 15 Index
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Investigation into launch of AltX 15 exchange traded fund (ETF)
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Business development, business development, business
development: Local and International (including focus on Africa)
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Questions?
JSE – Africa’s premier exchange
Copyright© JSE Limited 2008
www.jse.co.za