Sibanye-Stillwater, a leading gold and platinum producer, has announced that its shares have been approved for a secondary listing on the A2X exchange, effective October 6. This move is expected to provide investors with greater access to the company's ordinary shares through an additional regulated trading platform. The secondary listing is also anticipated to enhance shareholder choice and support liquidity in the company's shares. The primary listing on the JSE and secondary listing of American depositary shares on the New York Stock Exchange will remain unaffected.
The A2X exchange has attracted several prominent companies, including Anglogold Ashanti, Glencore, and Pan African Resources. In September, banking group Capitec joined A2X, following in the footsteps of other major South African companies such as Sanlam, Discovery, Standard Bank, Prosus, and Naspers. A2X serves as a secondary listing venue for companies, offering enhanced trading efficiency and cost savings. The exchange has been in operation since 2017 and has been gaining popularity among investors.
According to Sibanye-Stillwater, the secondary listing on A2X is expected to provide investors with greater access to its ordinary shares. This move is part of the company's efforts to enhance shareholder choice and support liquidity in its shares. The company's issued share capital will remain unaffected by the secondary listing on A2X. The listing is also expected to provide investors with an additional regulated trading platform.
A2X is also looking to attract secondary listings of actively managed exchange-traded funds (AMETFs). The exchange has approached the Financial Sector Conduct Authority to apply for an amendment to its listing requirements to enable it to house secondary listings of AMETFs and actively managed certificates. AMETFs have become popular worldwide and in South Africa, allowing portfolio managers to actively select securities to outperform a benchmark.
The growing popularity of AMETFs can be attributed to their ability to allow portfolio managers to actively select securities to outperform a benchmark. This is in contrast to traditional ETFs, which track an index. AMETFs appeal particularly to younger investors who are looking for more flexible investment options. A2X's move to attract secondary listings of AMETFs is expected to enhance optionality for the investor community.
Sibanye-Stillwater's secondary listing on A2X is part of a larger trend of companies seeking secondary listings on the exchange. The company's move is expected to provide investors with greater access to its shares and enhance shareholder choice. The secondary listing on A2X will also provide Sibanye-Stillwater with an additional platform to increase its visibility and liquidity.
The secondary listing of Sibanye-Stillwater on A2X is set to take place on October 6. The company's shares will be available for trading on the exchange, providing investors with an additional regulated trading platform. The listing is expected to enhance shareholder choice and support liquidity in the company's shares.
Key points
- Sibanye-Stillwater to gain secondary listing on A2X exchange from October 6.
- A2X exchange has attracted several prominent companies, including Anglogold Ashanti and Glencore.
- A2X is looking to attract secondary listings of actively managed exchange-traded funds.
