Roughly two of every three companies that listed during the boom of 2006 and 2007 are no longer on the JSE.
An analysis by Moneyweb reveals that only 40% of the 107 companies that made their debuts in the two years actually remain on the bourse, but two are suspended and a further five are in the process of being delisted.
In 2006, the JSE welcomed 18 companies to the Main Board and 19 companies to AltX. In 2007, these numbers were 25 and 37 respectively. Moneyweb’s analysis includes any companies that transferred from another board (for example, AltX to Main Board) as well as multiple classes of shares (such as the Hospitality Property Fund).
Designated advisors and sponsors definitely made hay in this boom, convincing all sorts of businesses to come to the market.
Who can forget golf course developer Acc-Ross? A number of companies were listed that, in hindsight, were arguably of questionable quality. Many were sub-scale industrial businesses, caught up in the pre-2010 Fifa World Cup construction bubble which ultimately burst.
Four listings in this period were as a result of the simplification process being undertaken by Anglo American. Paper and packaging group Mondi was demerged (into dual-listed Mondi Ltd and Mondi plc), while Kumba was unbundled into two separate entities: Kumba Iron Ore and Exxaro Resources. Separately, Hulamin was unbundled from Tongaat-Hulett.
Other resources companies which listed and remain on the JSE (many through the bourse’s inward-listing regime) include Jubilee Platinum plc, Eastern Platinum, Pan African Resource plc, Rockwell Diamonds and MC Mining (originally GVM Metals).
Fewer than 10 industrial or construction-related stocks which listed in the boom remain on the JSE (Raubex Group, South Ocean Holdings, Brikor, ARB Holdings, Kaydav Group, Calgro M3 Holdings, Consolidated Infrastructure Group, enX Group, Stefanutti Stocks).
More than double that number of shares related to the construction sector alone have delisted subsequent to their debuts on the market during the boom. These include fairly well-known stocks at the time, such as Protech Khuthele, RBA, Chemical Specialities (ChemSpec), Esor and SA French (later renamed Torre).
The JSE itself listed in this period, and other sizeable companies that remain listed are Afrocentric, Afrimat, Blue Label Telecoms, and MiX Telematics. Agriculture-focused company, Zeder, was listed by PSG in 2006.
A host of smaller companies remain listed – including Santova, Workforce Holdings, Silverbridge Holdings, Etion, Imbalie Beauty, Luxe Holdings (formerly Taste), CSG Holdings, Nutritional Holdings, Telemasters Holdings, Huge Group, Ellies and Vunani.
|Hospitality Property Fund Ltd A||Feb 2006||Main||Being delisted by Tsogo Sun Hotels|
|Hospitality Property Fund Ltd B||Feb 2006||Main||Being delisted by Tsogo Sun Hotels|
|IFA Hotels and Resorts Ltd||Feb 2006||AltX||Delisted in 2013|
|Acc-Ross Holdings Ltd||Feb 2006||AltX||Acquired by Pinnacle Point in 2008 (eventually delisted in 2016)|
|WG Wearne Ltd||Feb 2006||AltX||Suspended|
|Eland Platinum Holdings Ltd||Mar 2006||Main||Acquired by Xstrata in 2007|
|Diamond Core Resources Ltd||Mar 2006||Main||Merged with BRC in 2008, name changed to Delrand, delisted in 2016|
|Esor Ltd||Mar 2006||AltX||Delisted in 2020|
|Teal Exploration & Mining Inc||Apr 2006||Main||Delisted by ARM and Vale in 2009|
|Witwatersrand Consolidated Gold Resources Ltd||Apr 2006||Main||Acquired by Sibanye in 2014|
|PSV Holdings Ltd||Apr 2006||AltX||Suspended|
|AfroCentric Investment Corporation Ltd||May 2006||Main||Listed|
|Metmar Ltd||May 2006||Main||Delisted in 2015|
|JSE Ltd||Jun 2006||Main||Listed|
|Madison Property Fund Managers Holdings Ltd||Jun 2006||Main||Acquired by Redefine in 2009|
|Sanyati Holdings Ltd||Jun 2006||AltX||Liquidated, delisted in 2012|
|Taste Holdings Ltd||Jun 2006||AltX||Listed, name changed to Luxe Holdings|
|Spectrum Shipping Ltd||Jun 2006 (transfer from DCM)||AltX||Listed, name changed to Santova|
|Zaptronix Ltd||Jun 2006||AltX||Delisted in 2013|
|Dialogue Group Holdings Ltd||Sep 2006||AltX||Delisted in 2012|
|Gooderson Leisure Corporation Ltd||Sep 2006||AltX||Delisted in 2016|
|ApexHi Properties Ltd||Oct 2006||Main||Acquired by Redefine in 2009|
|Great Basin Gold Ltd||Oct 2006||Main||Delisted in 2013|
|Blue Financial Services Ltd||Oct 2006||AltX||Listing removed by JSE in 2018|
|Myriad Medical Holdings Ltd||Oct 2006||AltX||Name changed to Litha Healthcare, delisted in 2015|
|Ipsa Group plc||Oct 2006||AltX||Delisted in 2017|
|Afrimat Ltd||Nov 2006||Main||Listed|
|Kumba Iron Ore Ltd||Nov 2006||Main||Listed|
|Exxaro Resources Ltd||Nov 2006||Main||Listed|
|GVM Metals Ltd||Nov 2006||Main||Listed; name changed to Coal of Africa, then MC Mining|
|Moneyweb Holdings Ltd||Nov 2006||AltX (transfer)||Delisted in 2017|
|Workforce Holdings Ltd||Nov 2006||AltX||Listed|
|Celcom Group Ltd||Nov 2006||AltX||Delisted in 2009|
|Safic Holdings Ltd||Nov 2006||AltX||Name changed to Accentuate, being delisted|
|Silverbridge Holdings Ltd||Nov 2006||AltX||Listed|
|Africa Cellular Towers Ltd||Nov 2006||AltX||Listing removed by JSE in 2012|
|SAB&T Ubuntu Holdings Ltd||Nov 2006||AltX||Acquired by Simeka in 2008|
|Zeder Investment Ltd||Dec 2006||Main||Listed|
|Jubilee Platinum plc||Dec 2006||Main||Listed|
|Tiger Automotive Ltd||Dec 2006||Main (unbundled from Tiger Wheels)||Acquired by Ethos Private Equity in 2008|
|Pamodzi Gold Ltd||Dec 2006||Main||Listing terminated in 2009|
|Anooraq Resources Corporation Ltd||Dec 2006||Main||Name changed to Atlatsa, delisted in 2019|
|Top Fix Holdings Ltd||Dec 2006||AltX||Listed; name changed to M&S, then CSG Holdings|
|IFCA Technologies Ltd||Dec 2006||AltX||Name changed to Sherbourne Capital, listing terminated in 2014|
|Imuniti Holdings Ltd||Dec 2006||AltX||Listed, name changed to Nutritional Holdings|
|Austro Group Ltd||Feb 2007||Main||Listed, name changed to enX Group|
|South Ocean Holdings Ltd||Feb 2007||Main||Listed|
|Rare Holdings Ltd||Feb 2007||AltX||Delisted in 2016|
|Raubex Group Ltd||Mar 2007||Main||Listed|
|First Uranium Corporation||Mar 2007||Main||Listing terminated in 2013|
|Alert Steel Holdings Ltd||Mar 2007||AltX||Listing terminated in 2018|
|Telemasters Holdings Ltd||Mar 2007||AltX||Listed|
|Kelly Group Ltd||Apr 2007||Main||Acquired by Adcorp in 2014|
|Country Bird Holdings Ltd||May 2007||Main||Delisted in 2014|
|Eastern Platinum Ltd||May 2007||Main||Listed|
|Rolfes Technology Holdings||May 2007||AltX||Acquired; delisted in 2020|
|Hulamin Ltd||Jun 2007||Main||Listed|
|Ansys Ltd||Jun 2007||AltX||Listed, name changed to Etion|
|Interwaste Holdings Ltd||Jun 2007||AltX||Delisted in 2019|
|Finbond Property Finance||Jun 2007||AltX||Being delisted|
|Mondi Ltd||Jul 2007||Main||Listed|
|Mondi plc||Jul 2007||Main||Listed|
|William Tell Holdings Ltd||Jul 2007||AltX||Delisted in 2017|
|B&W Instrument and Elec Ltd||Jul 2007||AltX||Delisted in 2014|
|Kagisano Group Holdings Ltd||Jul 2007||AltX||Name changed to Credit U; delisted in 2008|
|Infrasors Holdings Ltd||Jul 2007||AltX||Acquired by Afrimat; delisted in 2015|
|Pan African Resource plc||Jul 2007||AltX||Listed|
|Stefanutti & Bressan Holdings||Aug 2007||Main||Listed (now Stefanutti Stocks)|
|Protech Khuthele Holdings Ltd||Aug 2007||Main||Liquidated; listing terminated in 2017|
|Sea Kay Holdings Ltd||Aug 2007||Main||Liquidated; listing terminated in 2016|
|South African Coal Mining Holdings Ltd||Aug 2007||Main||Delisted in 2016|
|Brikor Ltd||Aug 2007||AltX||Listed|
|Huge Group Ltd||Aug 2007||AltX||Listed|
|Iquad Group Ltd||Aug 2007||AltX||Acquired by Sasfin; delisted in 2012|
|1time Holdings Ltd||Aug 2007||AltX||Listing terminated in 2017|
|ABE Construction Chemicals Ltd||Aug 2007||AltX||Delisted in 2010|
|Placecol Holdings Ltd||Aug 2007||AltX||Listed; name changed to Imbalie Beauty|
|African Eagle Resources plc||Aug 2007||AltX||Delisted in 2017|
|Ellies Holdings Ltd||Sep 2007||AltX||Listed|
|RBA Holdings Ltd||Sep 2007||AltX||Listing terminated in 2018|
|Hardware Warehouse Ltd||Sep 2007||AltX||Acquired by Steinbuild; delisted in 2013|
|Country Foods Ltd||Oct 2007||AltX||Listing terminated in 2009|
|African Brick Centre Ltd||Oct 2007||AltX||Delisted in 2012|
|Racec Group Ltd||Oct 2007||AltX||Acquired by Grindrod; delisted in 2013|
|BSI (SA) Ltd||Oct 2007||AltX||Delisted in 2018|
|Ideco Group Ltd||Oct 2007||AltX||Name changed to Muvoni; delisted in 2013|
|Central Rand Gold Ltd||Nov 2007||Main||Delisted in 2018|
|Kwikspace Modular Buildings Ltd||Nov 2007||Main||Delisted in 2009|
|Telimatrix Ltd||Nov 2007||Main||Listed; name changed to MiX Telematics|
|Blue Label Telecoms Ltd||Nov 2007||Main||Listed|
|Kaydav Group Ltd||Nov 2007||Main||Listed|
|ARB Holdings Ltd||Nov 2007||Main||Listed|
|TWP Holdings Ltd||Nov 2007||Main||Acquired by Basil Read; delisted in 2009|
|Universal Industrial Corp Ltd||Nov 2007||Main||Delisted in 2011|
|Rockwell Diamonds Incorporated||Nov 2007||Main||Listed|
|Best Cut Ltd||Nov 2007||Development Capital Board||Delisted in 2011|
|Chemical Specialities Ltd||Nov 2007||AltX||Delisted in 2017|
|Dynamic Visual Tech Holdings Ltd||Nov 2007||AltX||Delisted in 2010|
|SA French Ltd||Nov 2007||AltX||Name changed to Torre; delisted in 2019|
|Calgro M3 Holdings Ltd||Nov 2007||AltX||Listed|
|Mazor Group Ltd||Nov 2007||AltX||Being delisted|
|O-Line Holdings Ltd||Nov 2007||AltX||Delisted in 2012|
|Buildworks Group Ltd||Nov 2007||AltX||Listed; name changed to Consolidated Infrastructure Group|
|Vunani Ltd||Nov 2007||AltX||Listed|
|CIC Holdings Ltd||Nov 2007||AltX||Acquired by Imperial; delisted in 2010|
|Freeworld Coatings Ltd||Dec 2007||Main||Acquired; delisted in 2011|
|Erbacon Investment Holdings Ltd||Dec 2007||AltX||Listing terminated in 2016|
Much is made about the JSE’s current ‘delisting crisis’, but according to the bourse 2006 was the first year since 1998 when “the total number of new listings outstripped the number of delistings on the JSE”.
This means the number of companies listed on the market steadily declined in the near-decade before 2006.
The exchange noted in its annual report in 2007 that of the 40 companies that delisted in the year, “over half did so as a result of a clean-up operation that the JSE has instituted”.
“It is clearing from the boards companies that do not meet listings requirements, including liquidity or minimum share ownership criteria. Many of these companies were listed during the global listings boom of the late nineties.”
Many of the delistings since this boom in the 2000s have been as a result of a similar clean-up operation by the JSE. This saw the bourse terminate the listings of a number of remnants of what had originally listed, or ‘zombie’ companies, some of which were in the process of being liquidated.
Listen to Nompu Siziba’s interview with Sasfin Securities deputy chair David Shapiro (or read the transcript here):