JPMorgan expects South Africa IPO surge on economic optimism

South Africa is poised for a surge in initial public offerings and fund-raising activity as soon as next year, spurred by optimism that the continent’s biggest economy may be turning a corner after years of lackluster growth, said JPMorgan Chase & Co. Positive sentiment has been building with the formation of a business-friendly governing coalition after the African National Congress lost its parliamentary majority for the first time since 1994 in the May 29 election. That’s triggered a wave of investment by multinationals, rallies in the rand and bonds and a rise of more than 20% in the benchmark stock index in dollar terms since June.