Locked
SA stock market to shrink as firms grapple with rising costs
The South African stock market is likely to continue shrinking as the nation becomes more and more unattractive for raising capital.
By Khuleko Siwele and Adelaide Changole
South Africa's main stock exchange will probably continue hemorrhaging listings over the next year as companies grapple with onerous regulatory and funding conditions, making it less attractive to raise capital through initial public offerings.
"The macro-economic environment is not particularly conducive to raising capital in South Africa," Kevin Brady, the chief executive officer of A2X, one of the top stock exchanges in the country said in an interview on Wednesday. "The regulatory requirements to have a primary listing are quite burdensome from cost, to time, to compliance departments, particularly for the smaller companies, which are the ones we are seeing de-listing."
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