At a hybrid listing ceremony held on Thursday, May 6, 2021 at the JSE, Colossal Holdings IC Cumulative Redeemable Preference Shares Due 2022, valued at $705.67 Million and the Senior Secured 4.25% Fixed Rate Bond valued at $1.31 Billion with a combined total value of $2.01 Billion is the second set of securities to list on the JSE Private Market.
Mrs. Marlene Street Forrest, in her welcome stated that, “Today has been another eagerly anticipated day by our Exchange ever since we launched the JSE Private Market on January 11, 2021 and had our first listing of two securities in February of this year. Mrs. Street Forrest further stated that, “With the listing of these two securities today, the value of securities listed on the private market will increase to $9.00 Billion, which is approximately 5.8% of the market capitalization of the Junior Market. We are also pleased to inform you that to date, the market has seen significant activities resulting in 13 trades in April valued at $8.67 Billion. In closing her welcome, she reminded stakeholders that this Private Market will provide investors with the opportunity to list bonds and equity securities that are in accordance with the FSC Guidelines for Exempt Distribution.
“From the corner shops to the board rooms, investment opportunities are being discussed in every area of society. Investment penetration is increasing. That is a significant milestone in our financial development history. But we have to keep running and to remain relevant, and markets have to keep developing. This development can only be propelled through continued innovation, investor education and engagement.” These are the opening words of AVP, Alternatives and Fund Management, at NCB Capital Markets, Ms. Simone Hudson who represented Colossal Holdings IC at the ceremony.
Ms. Hudson informed the audience on location and virtually that, NCB Capital Markets Structured Products Desk was created as a means of providing investors with greater opportunities and access to attractive assets suited to a wide spectrum of risk appetites. She further noted that investment solutions created by the Structured Products team, offer higher yields than traditional investments, tailor-made to meet specific needs and are tax efficient. Some of these solutions include, Principal Protected Notes, Securitization offerings and Leveraged Notes such as Colossal 10.25% preference share offer.
Ms. Tracy-Ann Spencer, Chief Operating Offer, NCB Capital Markets, in her remarks stated that, “We also know that private issuances have been around for decades. However, what the JSE’s private market platform allows for is marketability for issuers, liquidity and transparency for investors, ease of trading and increased market participation for brokers. It’s a win win win. It helps to unlock illiquid capital leading to greater wealth creation”.