Huge Group to list on SA's newest stock exchange - TechCentral

Huge Group to list on SA’s newest stock exchange

James Herbst and Duarte da Silva

JSE-listed telecommunications specialist Huge Group will list on A2X Markets, a new South African stock exchange, but will remain listed on the JSE.

The rationale for listing on A2X is that investors will be able to buy shares in the company at lower transactional costs compared to the JSE.

The listing, which takes place on 10 April, will be the first telecoms company to debut on A2X.

A2X is a licensed stock exchange authorised to provide a secondary listing venue for companies and is regulated by the Financial Services Board in terms of the Financial Markets Act.

Huge Group CEO James Herbst said there are no additional costs to the company of listing its shares for trading on A2X and no extra administrative burden.

“The rationale for this secondary listing was mainly to bring the prospect of lower transactional costs to investors who trade our shares,” Herbst said in a statement. “We believe that A2X will bring market efficiencies which our shareholders do not enjoy currently — we expect the ‘double’, being the bid offer spread, on our shares to narrow.”

Huge listed its ordinary shares on the JSE in August 2007 and today has a main board listing.

Chairman Duarte da Silva described a secondary listing on A2X as “very compelling”.

“I understand the importance of competition in investment markets and the importance of increased liquidity and lower transaction costs to investors,” he said. “Liquidity continues to be a key focus for the board of directors of Huge and we trust that A2X will bring even more liquidity to the Huge share.”

A2X began trading in October last year and now has eight approved brokers and six companies listed on its platform.  — (c) 2018 NewsCentral Media

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