Prosus debuts on Euronext, JSE

South African e-commerce giant Naspers made a historic move by listing its international internet assets under Prosus on the Euronext exchange in Amsterdam and the Johannesburg Stock Exchange (JSE) today. This milestone event has significant implications for the local stock market and investors, as highlighted by Thato Matsafu, Head of Primary Markets at the JSE, in a recent interview with CNBC Africa. Matsafu expressed enthusiasm about the listings, citing the previous corporate action involving Naspers in India in March 2019. He emphasized that the unbundling of Prosus from Naspers is expected to bring substantial value to local investors, with a total estimated worth of $3.5 billion. The anticipation surrounding the listing was palpable, as evidenced by the remarkable demand witnessed on the local bourse at the market's opening. Despite concerns about trading volumes amid the current economic climate, Matsafu remains optimistic about the future. He anticipates a surge in trading activity following the listing, as investors eagerly await opportunities presented by Prosus' debut on the exchange. While acknowledging the initial decline in Naspers' stock on the JSE post-unbundling, Matsafu emphasized the positive impact the restructuring would have on market dynamics. One of the key takeaways from the interview was the potential rebalancing effect on the JSE's top 40 companies due to Naspers' reduced weighting post-unbundling. Matsafu explained that the previous significant influence of Naspers on the index would diminish, allowing other companies to make more substantial contributions and create a more balanced market environment. Looking ahead, Matsafu expressed hope for increased market activity in the fourth quarter, driven by the Prosus listing and a promising pipeline of upcoming listings. While global IPO activity has been subdued, Matsafu remains confident that local market conditions will improve, especially with the expected Moody's announcement on November 1st. In response to inquiries about specific upcoming listings, Matsafu maintained confidentiality but hinted at ongoing interactions with the market ecosystem and a positive outlook for the fourth quarter. The interview concluded with a request for updated trading volume data, indicating continued interest in the market's response to the Prosus listing and its implications for the JSE. The debut of Prosus on the Euronext and JSE marks a significant development for local investors and the wider market, setting the stage for potential growth and increased activity in the coming months.