African Rainbow Minerals is set to be the first mining company to be listed on the A2X markets. It has been also been approved for a secondary listing as of last week. The mining firm will retain its primary listing on the JSE and its issued share capital remain unaffected by its secondary listing on A2X.
As such, African Rainbow Minerals shares will be available to trade on both the JSE and A2X. Notably, there is no cost, risk, or additional regulatory compliance for African Rainbow Minerals as a result of its secondary listing.
A2X CEO Kevin Brady expressed his pleasure from the new development. This, he said, is just a step towards the invitation of other companies across different sectors. In a statement released by the firm, ARM’s listing will bring the number of companies available for trade on A2X to 14 with a combined market capitalization of over US $44m.
A2X now boasts listings from many of the key sectors, including mining, banking, property, FMCG, financial services, insurance and telecommunications. Mr. Brady explains that as the firm gains greater traction, more companies are seeing the benefits that a secondary listing can bring to their shareholders.
Furthermore, A2X does not only provide an alternative venue on which to transact but the low fee structure also drives significant savings for the end investor. This is even as it creates a better quality market by narrowing spread and attracting new liquidity.
A2X is a licensed stock exchange that plays an integral part in the progression of the South African market-place and provides a secondary listing venue for companies. It is regulated by the Financial Sector Conduct Authority and the Prudential Authority in terms of the Financial Markets Act. A2X began trading in October 2017 and has acquired nine approved brokers that account for about 50% of market activity. Moreover, an experienced team hand-picked from across the financial services and technology industries, run the exchange.
This experience, combined with cutting-edge technology, stable systems and an agile environment enable A2X to provide the market with an efficient and cost-effective trading venue to secondary list and trade shares.