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Largest in South Africa The stock exchange, the JSE, said on Thursday that it signed an agreement with a company called Globacap Technology to create a blockchain-based private placement platform to enable small and medium-sized companies to raise capital.
The company, the JSE said, “will allow obtaining financing for infrastructure and will allow small and medium issuers to raise capital in South Africa.” The commercial agreement includes digital record services and remains subject to licensing approval requirements.
“As private equity markets continue to grow in importance and are an increasingly attractive alternative source of capital for issuers, the JSE aims to create a centralized platform for issuers to raise capital effectively and efficiently,” said the bag.
Headquartered in the UK, Globalcap is a fintech company focused on “next generation capital markets and digital ledger services”. Through its regulated private placement and capital management platform, it digitally manages around £ 1 billion of private equity and debt instruments for 60 companies.
The JSE will invest £ 4 million for a minority stake in Globacap, subject to approval by the UK Financial Conduct Authority. The investment, he said, is in line with his intention to build a long-term relationship with Globacap.
For Africa
Globacap’s platform provides fundraising management tools to automate private issues in the equity and debt capital markets. It also offers second-round liquidity capabilities that allow holders of shares or debt instruments to exit or syndicate their original investment, according to the JSE. It also offers a complementary digital registry service, which digitizes and simplifies the management of shareholder registries.
Through the partnership, JSE intends to replicate and adapt Globacap’s offering in African markets, while reducing the execution risk of expanding into new markets and products.
The investment will be financed from its existing cash reserves and is expected to close in the first quarter of next year. – © 2020 NewsCentral Media
