Investec is set to become the second major SA bank, after Standard Bank, to list on the A2X, the alternative exchange that began trading in October 2017.
The listing on September 16 would bring the number of instruments on the A2X to 56 with a combined market value of R5-trillion, and will be another step towards that exchange’s goal of secondary listings for all JSE top 40 counters by 2023.
The A2X has said this could save the asset management industry more than R1bn a year due to the narrowing of the spread between bid and offer prices on traded shares.
“Investec is pleased to announce a secondary listing on A2X to provide investors with a greater choice in trading venues,” Investec group CEO Fani Titi said in a statement.
“We believe the secondary listing supports the development of a healthy local market,” he said.
CEO of A2X Markets Kevin Brady said the A2X was delighted to have a company of Investec's calibre on board.
“We appreciate the message of support for the development of a healthy and vibrant local market and look forward to demonstrating the benefits that a listing on A2X will bring to both Investec and its investors,” he said.
Investec would join a list companies on the A2X that includes Naspers, Prosus, Sanlam, Sasol, Aspen Pharmacare, Exxaro, AVI, Mr Price, Growthpoint, Momentum Metropolitan and Famous Brands.
Investec Limited will retain its listing on the JSE, the Namibia Stock Exchange (NSX) and the Botswana Stock Exchange (BSE).
Investec Plc, which houses the groups non-SA operations, will retain its listing on the London Stock Exchange (LSE) and the JSE.
While the two are separate legal entities, they are bound together by contractual agreements and mechanisms and operate as if they are a single unified economic enterprise. The issued share capital of both will be unaffected by the A2X secondary listing.
Correction: September 9 2021
An earlier version of this article mistakenly said the combined market value of A2X listed instruments would be $5-trillion, when this figure should have been in rand.
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