Absa to list on A2X while retaining primary listing on JSE

Absa Group will list its ordinary shares on A2X Markets, though it will retain its primary listing on the JSE.

The shares of SA’s fourthbiggest bank by market value will become available for trade on the alternate exchange as of February 2, A2X said in a statement on Thursday. There is no cost or additional regulatory compliance for Absa as a result of the secondary listing.

“We are very pleased to be listing on A2X, which further demonstrates our support for developing SA’s capital markets,” said Jason Quinn, Absa’s financial director. “It offers investors a wider choice of where to trade our shares and potentially reduces their trading costs.”

Absa listing on A2X will bring the number of instruments listed on the platform to 94, giving the burgeoning exchange a combined market capitalisation of R6.5 trillion. It is also the 19th top 40 company to list on A2X, with the others being AngloGold Ashanti, Aspen, Exxaro, Discovery, Growthpoint, Impala Platinum, Investec Ltd and Plc, Mr Price, Naspers, Nedbank, Nepi Rockcastle, Prosus, Remgro, Sanlam, Sasol, Standard Bank and Woolworths.

“We are delighted to be welcoming Absa Group, one of Africa’s largest financial services groups, to our market next week,” said A2X CEO Kevin Brady. “In July 2019, Absa became the first issuer to secondary list ETFs on A2X and we are pleased to bring the benefits and savings that a listing on A2X brings to Absa Group investors too.”

A2X, which is now licensed to provide a secondary listing venue for companies, says it is saving the investment market about R500m a year, thanks to lower trading fees and its ability to narrow the bid-offer spreads of the prices of listed securities.

By allowing transacting brokers to arrive at a more efficient pricing level when buying and selling shares, A2X says it plans to boost the potential savings for the market to R1.5bn as more public companies opt for a secondary listing on its platform. It says its fees on the end-toend cost of a trade are about 50% lower than those of the JSE, while it attracts additional liquidity in terms of the volume of shares traded.

WE ARE VERY PLEASED TO BE LISTING ON A2X IT OFFERS INVESTORS A WIDER CHOICE OF WHERE TO TRADE OUR SHARES