The Johannesburg Stock Exchange has announced that JSE Private Placements (JPP), its wholly-owned subsidiary, has obtained a financial services provider license, paving the way for innovation and growth in private capital raising, both stock and debt.

JPP provides an automated and digitized platform for private companies wanting to raise financing or equity. The web system would connect private enterprises and issuers directly to investors, allowing for more transparent, efficient, and accessible private capital generation. Investors can browse a wide range of potential offers that suit their investment criteria, as well as trace the history of past placements and deals, giving much-needed transparency in this fast-growing market segment.

“We are delighted with this milestone,” says JSE Group CEO Leila Fourie. “With JPP, we are building a future-fit capital market that delivers a seamless digital marketplace that pairs up private debt and equity issuers with investors, including venture capital funders,” she explains.

“Our engagements with institutional investors and private companies suggest that the market is eager for this service because of the efficiencies it will introduce,” says Valdene Reddy, Director of Capital Markets.

Here Is What You Need To Know

• JPP’s private market services are provided in collaboration with Globacap, a capital markets technology business based in the United Kingdom in which the JSE has a minority share. The securities landscape has been standardised by Globacap, allowing for frictionless asset generation and transferability. Over $10 billion in private equity and debt instruments are digitally handled for over 80 companies and 4,300 investors on their platform.

• JPP will focus on South African SME and infrastructure funding and will extend its services to the rest of the African continent in due course

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“At Globacap, we’ve been building technology to unlock the potential of capital markets in the digital age. We are excited to work with the JSE on these leading-edge projects and believe these advances will have a significant impact on South Africa’s economic growth while positioning JPP as a market leader in digital private placements,” Myles Milston, Globacap’s CEO, says.

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Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer