Exxaro has ap­proval for sec­ondary list­ing on A2X

Pretoria News - - BUSINESS REPORT - DI­NEO FAKU di­[email protected]

EXXARO, one of the largest black-owned coal and heavy min­eral com­pa­nies in South Africa, has been ap­proved for a sec­ondary list­ing on the A2X from next week. Exxaro’s list­ing brings the num­ber of se­cu­ri­ties avail­able for trade on A2X to 36, with a com­bined mar­ket cap­i­tal­i­sa­tion of about R1.5 tril­lion.

Exxaro chief ex­ec­u­tive Mx­olisi Mgojo said the list­ing sig­nalled the group’s com­mit­ment to in­vestors. “At Exxaro we be­lieve one of the keys to re­main­ing rel­e­vant is to in­cor­po­rate emerg­ing tech­nolo­gies into our busi­ness op­er­a­tions and our list­ing on A2X is an ex­am­ple of this,” Mgojo said.

This month Exxaro re­ported a 13 per­cent in­crease in head­line earn­ings for the year ended in De­cem­ber to R7.6 bil­lion, mainly driven by its in­come from eq­uity in­vest­ments.

Mgojo said the A2X list­ing would re­sult in cut­ting costs. “A2X is lever­ag­ing tech­nol­ogy in an ef­fort to re­duce trad­ing costs which will lead to cost sav­ings for Exxaro in­vestors”, he said.

A2X, ZARX, and 4AX, are al­ter­na­tive stock ex­changes that were in­tro­duced in South Africa to give com­pe­ti­tion in the mar­ket.

City Lodge Ho­tel, South Africa’s lead­ing se­lected ser­vices ho­tel chain that owns lodg­ing brands such as Road Lodge, Town Lodge, City Lodge Ho­tel and Court­yard Ho­tel and Fairview in Kenya listed on the A2X ear­lier this month.

Petro­chem­i­cals gi­ant Sa­sol has also listed on the A2X in Fe­bru­ary as part of the com­mit­ment to ad­ding value for share­hold­ers and pro­vid­ing them with al­ter­na­tive trad­ing plat­forms.

A2X, which be­gan trad­ing in Oc­to­ber 2017, has list­ings from me­dia, bank­ing, re­tail, fi­nan­cial ser­vices, in­sur­ance, health­care, and telecom­mu­ni­ca­tions sec­tors. Absa’s three pre­cious me­tal ex­change-traded funds and In­vestec’s ex­change-traded notes are also listed on A2X.

The JSE, South Africa’s old­est and big­gest bourse, ex­pe­ri­enced a re­duc­tion in the level of ac­tiv­ity in pri­mary mar­kets, with fewer new eq­uity list­ings. Rev­enue de­creased by 5 per­cent in the year ended De­cem­ber 2019 to R147 mil­lion from R155m in 2018 ow­ing to sig­nif­i­cantly fewer ini­tial pub­lic of­fer­ings (IPO) for the year as there were five IPOs ver­sus 12 IPOs in 2018.

Exxaro shares rose 9.03 per­cent on the JSE yes­ter­day to close at R95.34.

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