Also, last year’s gains were concentrated in some bits of the market, mostly in the mining sector – Impala Platinum jumped 290% – while other shares were bleeding. A narrative statement must be included, explaining why the fee is believed to be market-related, and additional disclosures are required where the recipient of the fee is a related-party to the issuer. An accelerated specific issue of shares for cash enables listed companies to raise cash more quickly. Covid-19 pandemic has wiped out large chunks of many companies' market values, with smaller, JSE-listed companies among the hardest hit. But some experts are not biting, *Copyright © 2020 Business Insider Inc.All rights reserved.Registration on or use of this site constitutes acceptance of our. In response to the JSE's request, the FSCA granted a general extension of two months in relation to the following financial reporting deadlines, applicable to JSE-listed equity issuers with financial year-ends of 31 December 2019, 31 January 2020, 29 February 2020 and 31 March 2020: Specific disclosures in circulars relating to capital raising. Email firstname.lastname@example.org, Deepening Democracy through Access to Information, South African Institute of International Affairs, How the Cannabis laws impact your business. Written by Colin du Toit, a Partner & Elodie Maume, a Senior Professional Support Lawyer at Webber Wentzel, EMAIL THIS ARTICLE SAVE THIS ARTICLE The ALSI closed at 51038 points, the lowest in more than a year. The JSE said it is in general reasonable to expect that the fee payable to a significant shareholder (or one looking to take a long-term significant stake) should be lower than that payable to an independent merchant bank. However, McLachlan says it’s precisely because of the lockdown that Distell This company might be relatively small in comparison to many other listed companies, but its profitability growth has far exceeded most, which makes it stand out and a close watch for 2020. These updates should ideally be provided ahead of the time when a trading statement is required and must be provided when a trading statement is issued. Please enter the email address that you used to register on Polity.org.za. email . Issuers are currently required to ensure that the underwriting commission paid to shareholders is market-related. One estimation was that JSE-listed companies suffered losses of some R985 billion from 24 to 28 February. A claw-back offer is a pre-placed rights offer where the rights offered to third party placees (to subscribe for shares in the company) are offered to the company’s shareholders in proportion to their existing shareholdings (enabling such shareholders to claw-back their rights to subscribe for such shares). Listed companies often seek to obtain general authorisation to issue shares for cash at their AGM, in terms of a shareholder resolution that has to be passed by a 75% majority. or those trading down to a more secure lifestyle estate development.”. Note: Search is limited to the most recent 250 articles. “The trend is towards delisting,” says Jean Pierre Verster, CEO of Protea Capital Management. construction activity and home buying to grind to a halt. Get the best of our site delivered to your inbox every day. Many smaller companies have left the bourse after takeovers and others are on their way to being delisted – including the large food company Pioneer Foods, which is being bought by Pepsico, and the storage company Metrofile. To ensure transparency, issuers are now required to include a narrative in their circulars explaining why they believe the underwriters' fee is market-related, based on the nature of the service provided. Providing information that will assist investors to assess the potential impact of the Covid-19 crisis on the issuer's products and services, supply chains/deliverables and other business impacts is key, including insight into the future cashflow position. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.