Remgro Limited, a South African investment holding, has obtained approval for the secondary listing of its shares on A2X markets next year.
The company is led by South Africa’s richest man Johann Rupert.
The move will raise the number of listed companies on the alternative exchange to 60.
Remgro’s shares will be available for trading from Jan. 3, 2022.
Media sources have reported that the listing will neither affect the company’s issued share capital, nor its primary listing on the Johannesburg Stock Exchange.
According to BusinessDay, the listing will add R66.9 billion ($4.14 billion) in market value to the alternative exchange, raising its market capitalization to R5 trillion ($309.5 billion).
Commenting on the listing, Remgro CEO Jannie Durrand said: ‘’At Remgro, our vision is to be the trusted investment company of choice that consistently creates sustainable stakeholder value. Our listing on A2X is an extension of this commitment and provides our investors with the choice to source additional liquidity and the opportunity to capture the benefits of narrower spreads and lower exchange fees.”
Remgro is a diversified investment holding established in the 1940s by the late Dr. Anton Rupert (Rupert’s father). Its interests consist primarily of investments in the healthcare, consumer products, financial services, infrastructure, industrial and media industries.
Recall that Remgro recently sold part of its majority stake in Community Investment Ventures Holdings to the South African telecom giant, Vodacom Group.
As part of the deal, Vodacom Group is expected to inject R6 billion ($390.4 million) into the new entity, partnering with Remgro en route.
Meanwhile, A2X is an alternative stock exchange platform that provides a secondary listing opportunity for corporate institutions. It began trading in October 2017 and is regulated by the Financial Sector Conduct Authority and the Prudential Authority.
Reputable institutions such as Aspen, Exxaro, Naspers, Standard Bank and Sanlam are listed on the A2X.
As of press time, Dec. 15, Remgro’s share price is R12,885 ($797.6)
