(Bloomberg) — The number of initial public offerings on Johannesburg’s stock market in the first quarter accelerated to levels not seen since the global financial crisis as the benchmark index rose to a record and companies took advantage of the rally. 
From January to end March three companies, including Lodestone REIT Ltd. and printing business Novus Holdings Ltd. sold stock. In 2014 there were two IPOs in the first quarter, in 2013 just one, and none in 2012, according to data compiled by JSE Ltd., which owns the exchange. The last time there were more was in 2008, when there were five IPOs before April.
“These companies are successfully able to float on the market because there’s been a roaring bull market, so if they’re a decent company, they’re likely to find support,” Sean Ashton, chief investment officer of Anchor Capital, whose parent Anchor Group Ltd. sold stock in September, said in a phone interview from Johannesburg on Wednesday. “If something is sitting at a 10 price-earnings ratio and the market’s at 20, it will find fans.”
The average price-to-earnings ratio of the companies comprising Johannesburg’s benchmark index is 20, according to data compiled by Bloomberg. While the South African economy has slowed and unemployment is almost 25 percent, consumers have benefited from a drop in motor fuel prices and lower inflation, helping boost stocks linked to retail industries.
“South African stocks have started 2015 on a solid note, aided by the recent drop in oil prices,” Mark Mobius, who oversees about $40 billion as the executive chairman of Templeton Emerging Markets Group, wrote in a blog e-mailed on Wednesday. “While South Africa has been struggling with an electricity crisis that could stunt gross domestic product growth this year, we continue to believe that attractive long- term investment opportunities exist.”
