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Index Change Advice – 20180823 FTSE JSE Ground Rules Secondary Lines and IPOs
FTSE/JSE Africa Index Series - Ground Rule Clarifications
23 August 2018
FTSE Russell would like to inform clients of the following clarifications to the FTSE JSE Africa Index Series
Ground Rules which are effective immediately.
Section 4
4.2 Secondary Lines
4.2.1 Where there are multiple lines of equity capital in a company, all are included and priced
separately, provided that they pass index eligibility screens in their own right. To be considered
for FTSE/JSE All Share inclusion each individual instrument has to pass the free float,
liquidity and size hurdles. Size refers to each individual instrument meeting the auto
addition buffer of the FTSE/JSE All Share Index. Individual instruments will be deleted
from the FTSE/JSE All Share Index if its size falls below the auto deletion buffer of the
index. The aggregate of the multiple lines are used for ranking by company market cap.
? All partly-paid classes of equity are priced on a fully-paid basis if the calls are fixed and are
payable at known future dates. Those where future calls are uncertain in either respect are
priced on a partly-paid basis.
4.2.2 For the purposes of the FTSE/JSE Africa Index Series, companies with an approved dual listed
structure are treated as secondary lines of a single entity.
Section 6: Changes to Constituent Companies
6.4 New Issues
6.4.5 Variable and best effort IPOs will not be considered for fast entry inclusion since
FTSE/JSE would be: 1) unable to confirm if the minimum free float requirement has
been met; and 2) 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, in advance, of the number of shares that will be made available
at the time of listing (e.g. specific holders have publicly disclosed a commitment to sell
a number of shares). If there is no disclosure in advance, 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 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 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 (v5.8) is now available on the FTSE
Russell website: www.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 4563 6346
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: 23/08/2018 05:10:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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