A secondary listing
Multiple listings in the same jurisdiction are common place in most developed markets and increasingly so in many developing markets. Regulatory authorities around the world have moved to open up capital markets to competition to drive the benefits competition brings to the end user, which is often the pension fund of an everyday working person.
A secondary listing on A2X complements a company’s primary listing by providing its investors with a choice of venue to transact. This comes with no impact on a company’s primary listing, nor any cost, risk or additional regulatory burden, while at the same time, bringing significant potential benefits to shareholders.
The numbers speak for themselves. In South Africa, based on a typical day’s trading activity of R20 billion in equities, efficiency savings that can accrue to industry and the end investors are estimated to be upward of R4 million per day, or a massive R1 billion per year.
Why have a secondary listing on A2X?
- It creates real benefits for your company’s shareholders by:
- Providing choice of venue to transact
- Lowering the cost to transact
- Generating material savings for the end investor by narrowing spreads and increasing liquidity
- Narrower spreads and deeper pools of liquidity lower the cost of raising capital
- From a contingency perspective, should one market experience issues, your shares will still be available for trade
- Competition creates a more responsive and dynamic exchange environment
How do I go about creating a secondary listing on A2X for my company?
- Simply contact the A2X team who will guide you through the simple and swift listing process
- There is no additional regulatory burden (your primary listing ensures that you are already compliant)
- There is no cost to list on A2X or ongoing fees to be listed
- No risk to be listed on A2X
- There is no impact on your company’s primary listing or share register
The secondary listing process is well established both in South Africa and internationally. Six of the largest ten companies listed on the JSE by market-cap are secondary listings and many of South Africa’s leading companies have secondary listings on the Namibian Stock Exchange.
A word from the companies currently listed on A2X
|“Our board agrees that stock exchange competition is healthy for the entire market. We support the idea that reduced cost of trading will bring in additional investors.”|
|“… we understand the value that a secondary listing brings to our company and we believe in free market principles that allow companies to grow and flourish.”|
|“We are pleased to complement our primary listing on the JSE with the secondary listing on A2X.”|
|“As an active player in the South African equity market…… we felt that Coronation needed to be part of the evolution.”|
|“This was not a very difficult decision to make. There are no additional costs to Huge of listing its shares for trading on A2X, there is no additional administrative burden and the continuing obligations are easy to fulfil. The rationale for this secondary listing was mainly to bring the prospect of lower transactional costs to investors who trade our shares.”|
|“…. the company expects its A2X listing to enable better price discovery and to broaden the base of shareholders, given that trading costs on A2X are significantly lower.”|
|“We welcome the opportunity to attract possible new international investors while also providing benefits to Sanlam shareholders and the wider investor community.”|
About our Exchange:
- A2X is an independent stock exchange founded in 2014 by individuals with extensive experience in financial markets and technology
- A2X is licensed and regulated by the Financial Sector Conduct Authority (former FSB) and the Prudential Authority (SARB)
- African Rainbow Capital, a fully black owned and controlled company, holds a strategic minority stake in A2X
- By using the latest high-performance exchange technology supplied by Aquis Exchange in the UK and through other efficiencies, we are able to offer fee savings of 50% on the end-to-end cost of transacting
- A2X fits into the existing capital market infrastructure and uses Strate and its participants to settle all trades transacted on A2X