Telecoms group Vodacom will offer its shares through a secondary listing on Johannesburg’s A2X exchange as a way to provide an alternative trading channel for its stock.
The group, valued at about R213.29bn on the JSE, is SA’s largest mobile operator with 45-million customers, competing locally with MTN, Telkom and Cell C. A subsidiary of UK’s Vodafone, the group operates one of the continent’s largest telecoms businesses with more than 185-million customers.
The company operates in the Democratic Republic of Congo (DRC), Egypt, Lesotho, Mozambique, Tanzania and SA, as well as in Kenya and Ethiopia through a 35% shareholding in Safaricom.
On Wednesday, Vodacom said its ordinary shares will begin traded on the A2X from October 26. Vodacom will retain its primary listing on the JSE, and its issued share capital will be unaffected by the secondary listing on A2X, making the stock available on both exchanges.
“The secondary listing on A2X complements the company’s primary listing by providing its investors with an alternative trading venue,” said the group.
A2X, which began trading in October 2017 and is partly owned by Patrice Motsepe’s African Rainbow Capital, is a licensed stock exchange authorised to provide a secondary listing platform for companies. It has 170 listings with a combined market capitalisation of more than R10-trillion.
In a statement, Vodacom group CFO Raisibe Morathi said: “We are pleased that the secondary listing on A2X has been approved. As we grow and having recently accelerated our growth profile by completing the acquisition of a 55% stake in Vodafone Egypt, we are delighted to be able to give our investors an alternative venue to trade, and trust they will find this beneficial.”
The company joins Reunert, MTN, Absa, Naspers, Prosus, Sanlam, Sasol, Aspen Pharmacare, Exxaro, AVI, Mr Price, Growthpoint, Momentum Metropolitan and Famous Brands on the A2X.
Last week, retailer TFG became the latest addition to the exchange when shares began trading on October 10.
On the JSE, Vodacom’s stock has done well over years, gaining a reputation for being the stable telecoms investment, when compared with the volatility experienced by rivals Telkom and MTN.
Earlier in the year, the group reported a 16% jump in revenue to R119.2bn while group service revenue rose 17.2% to R93.7bn, helped by the acquisition of Vodafone Egypt and the rand depreciating against some international currencies.
Vodacom acquired a 55% stake in Vodafone Egypt for R43.6bn and the effective date of the transaction was December 8 as it aims to reach more than 500-million people across Africa.
On a normalised basis — which excludes the boost from Vodafone Egypt and a constant currency basis — total revenue advanced 4.9% and group service revenue 3.5%.
Vodacom and Remgro’s telecom division are fighting to merge their fibre businesses after the Competition Commission recommended the deal be blocked.
If approved by the Competition Tribunal, which has the final say on antitrust-related matters, the merger will create one of SA’s largest fibre providers.
The deal involves Remgro’s CIVH fibre units Vumatel and Dark Fibre Africa (DFA), which were folded into a new holding company, Maziv. Vodacom aims to take a 30% stake in Maziv, worth an estimated R13bn, with the option of raising that to 40%.
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