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Informative Notice - 20220623 FTSE JSE Ground Rules Update Direct Listing IPOs
FTSE JSE Africa Index Series: Ground Rule Update
23 June 2022
FTSE Russell would like to inform clients of the following Ground Rule update to the FTSE JSE Africa
Index Series Ground Rules which is effective immediately:
Section 6: Changes to Constituent Companies
New Rule
6.4.5 Variable, best effort and direct listing IPOs* will not be considered for fast entry inclusion
since FTSE/JSE would be:
* unable to confirm if the minimum free float requirement has been met; and
* unable to assign an accurate free float for the purposes of the index calculation.
6.4.6 Variable, best effort and direct listing IPOs will be considered for index inclusion at the next
quarterly review if, by the review cut-off date, a public disclosure* (which has been
published post IPO) is available confirming the updated shareholder structure. Index
inclusion remains subject to meeting all other eligibility criteria. If the post IPO shareholder
structure has not been disclosed by the review cut-off date, the evaluation of the
company will be deferred to a subsequent quarterly review.
*A public disclosure is typically by way of a company filing, stock exchange notice or
shareholding regulatory announcement.
Old Rule
6.4.5 Variable and best effort IPOs* will not be considered for fast entry inclusion since FTSE/JSE
would be:
* unable to confirm if the minimum free float requirement has been met; and
* unable to assign an accurate free float for the purposes of the index calculation.
Direct listing IPOs will be eligible for consideration for fast entry inclusion if there is
confirmation, before the close of trading on the first day of listing, of the number of shares that
have been made available (e.g. specific holders have publicly disclosed a commitment to sell a
number of shares). If there is no disclosure before the close of trading on the first day of
listing, the company will not be considered as a potential fast entry addition.
6.4.6 Variable and best effort IPOs and those direct listing IPOs (which do not qualify as a fast
entrant) will be considered for index inclusion at the next quarterly review if, by the review cut-
off date, a public disclosure* is available confirming either the actual number of shares sold
during the offering or the post IPO shareholder structure. Index inclusion remains subject to
meeting all other eligibility criteria. If the number of shares sold during the IPO, or the post
IPO shareholder structure, remains unknown on the review cut-off date, the evaluation of the
company will be deferred to a subsequent quarterly review.
*A public disclosure is typically by way of a company filing, stock exchange notice or
shareholding regulatory announcement.
An updated copy of the FTSE JSE Africa Index Series Ground Rules (Version 7.8) is now available from
FTSE Russell: info@ftserussell.com
For further information please contact FTSE Russell Client Services at info@ftserussell.com or call:
Australia +1800 653 680
Hong Kong +852 2164 3333
Japan +81 3 6441 1440
London +44 (0) 20 7866 1810
New York +1866 551 0617
Alternatively please visit our website at www.ftserussell.com
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Date: 23-06-2022 05:05:00
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