Woolworths, one of the country’s largest retailers, has become the latest JSE powerhouse to take a secondary listing on A2X, pushing the stock exchange’s market capitalisation around R5.2-trillion.
The listing will take place on Friday, 2 December 2022.
Woolworths CEO Roy Bagattini said: “We are pleased to be listing on A2X and to be able to offer investors greater access to trade our shares, and the opportunity to participate in the on-going growth and development of South Africa’s capital markets.”
Woolworths, which is worth R67.7-billion on the JSE, becomes the 91st company to list on A2X. The JSE, with its 135 years’ history behind, is still overwhelmingly the investors’ choice, especially for primary listings.
A2X’s strategy has been to target big companies with a primary listing on the JSE to have their secondary listing with it.
A2X CEO Kevin Brady said Woolworths’s secondary listing benefits investors trading in the retail giant’s shares through reduced fees and transaction costs.
“Woolworths is one of South Africa’s most iconic retail brands which is backed by a culture of sustainability and is renowned for doing good business. We are delighted to be welcoming them to our market,” he said.
Members of the JSE’s A-list grouping, formally called the Top 40 Index which is home to the 40 largest companies by market capitalisation, have increasingly sought a secondary listing on A2X.
Woolworths is also a Top 40 index corporate. Other companies that belong to the index that have a secondary listing on A2X include Discovery, Exxarro, Investec, Naspers, Mr Price, Standard Bank and Nedbank, among others. In total, 18 companies the Top 40 index have a secondary listing on the fledgling bourse.
South Africa now has three new stock exchanges in the form of A2X, ZAR X, and 4AX. The new exchanges look set to disrupt the JSE’S monopoly.
Having numerous exchanges is not unique to South Africa. India has 21 stock exchanges, while China and Russia have four each. A2X has by far enjoyed better success than ZAR X and 4AX.
