Is the JSE Shrinking or Transforming? The Real Story Behind the Delisting Trend

Headlines about companies leaving the Johannesburg Stock Exchange (JSE) have sparked a nervous debate: is this a symptom of a failing economy or a sign of healthy corporate evolution? The answer, according to market experts, is nuanced. While the number of listed companies has declined, the trend is less a crisis of confidence and more a reflection of global strategic shifts, value-driven takeovers, and a long-overdue regulatory modernisation.

The delistings of household names like Adcock Ingram, MultiChoice, and soon Barloworld and Metrofile are certainly eye-catching. However, viewing them in isolation misses the broader, global context. A key driver is corporate consolidation and strategic refocusing, particularly among large multinationals. The restructuring of Anglo American, for exampledemerging some assets and merging with Canada’s Teck Resources to focus on copperis a global play for commodity dominance, not a retreat from South Africa.

Delisting as a Value Play, Not a Failure

Many departures are “take-private” transactions where companies are acquired at a significant premium, suggesting the public market was undervaluing them. The buyout of Mediclinic at a 50% premium and the bidding war for Royal Bafokeng Platinum delivered direct value to shareholders. These moves often allow companies to execute long-term strategies away from the quarterly pressures of public markets. The fact that international players like France’s Canal+ are the acquirers also signals that global capital still sees strategic value in South African assets.

The Small-Cap Squeeze and Regulatory Relief

For smaller companies, the issue is often one of burden versus benefit. The cost, administrative load, and regulatory complexity of maintaining a listing can be overwhelming for firms with low trading volumes. Recognising this, the JSE has undertaken significant regulatory reform, launching simplified Listings Requirements in early 2026 and splitting its Main Board into Prime and General segments to better cater to companies of different sizes and needs.

This evolution aims to make the exchange more attractive and relevant. Simultaneously, new listings like Optasia and the prospective listing of Cell C Holdings indicate there is still appetite for the right stories, particularly in sectors like technology.

The narrative, therefore, is one of transition, not terminal decline. The JSE is not simply shrinking; it is being reshaped by the same forces affecting bourses worldwide: consolidation, private capital, and the search for strategic focus. While a smaller main board may feel like a loss, it can also reflect a market maturingwhere remaining listings are more robust, and exits often represent successful value realisation for investors rather than a vote of no confidence. The true test will be whether the reformed, streamlined JSE can attract the next generation of high-growth companies to list and stay.