Huge Group will begin trading alongside major telecommunications operators MTN and Vodacom after the JSE approved its move from the Alternative Exchange (AltX) to the bourse’s main board.
The transfer to the JSE’s “mobile telecommunications” section will take effect on 1 March.
“The move follows a request by Huge to move to the main board as a result of the company fulfilling all of the criteria for a main board listing as laid down in the listings requirements of the JSE,” it said.
CEO James Herbst said the move will “increase the audiences to which Huge Group can market its business and investment case”.
“A lot of the investment houses set self-imposed restrictions on investing in AltX-listed companies,” Herbst told TechCentral via telephone on Thursday. AltX companies, fairly or unfairly, are seen as more risky investment bets than those listed on the main board.
“If you are listed on AltX, your audience … is limited. By listing on the main board, you get rid of that restriction and get access to more audiences to which you can talk.”
Herbst said it is hard to know at this stage if the move will have a big impact on Huge Group’s trading liquidity. “Huge remains a small cap. We have to do a lot more around liquidity.”
Huge Group will be listed alongside MTN, Vodacom and Blue Label Telecoms. — © 2016 NewsCentral Media