JSE scores a hat-trick
The JSE will celebrate three initial public offerings this week.
Today, low-cost airline lists on the JSE's AltX board. On Thursday, mass housing specialist Sea Kay Construction will list on the main board. And on Friday, ABE Construction will list on AltX.
A further three companies are currently waiting for listing approval. The JSE said listing rules prohibit it from naming these candidate companies.
"Some companies list to raise capital, while others list to boost their profile," said JSE head of marketing and business development Noah Greenhill.
Cynics see a flood of initial public offerings as a danger signal. Market crashes tend to be heralded by a rush of dubious companies listing to pocket some of the "dumb money" floating around.
But Ernst & Young associate director Stef Greeff said the JSE's application process is vigorous. Companies can only list if designated advisers are convinced that they are of sufficient quality.
The process usually takes several months, making it difficult for "dot bomb" companies to leap on a bull market bandwagon.
"The company needs to comply with the requirements of the JSE and the Companies Act," he said.