YeboYethu, Vodacom South Africa’s black economic empowerment scheme created in 2008, began trading on the empowerment segment in the telecommunications sector of the JSE’s main board on Thursday.
YeboYethu is the third company to list on the JSE’s empowerment segment.
The segment allows BEE shares to be listed and traded among qualifying shareholders.
Since YeboYethu’s incorporation, over 100 000 black people have been able to hold a beneficial interest in Vodacom South Africa through investing in YeboYethu shares, the JSE said in a statement.
In the past, BEE shares were traded on the over-the-counter BEE market, but in 2015 the Financial Services Board mandated that these shares must be traded on a licensed exchange.
In a separate statement, Vodacom Group CEO Shameel Joosub said a major advantage of the move is an anticipated increase in liquidity.
“Being listed on the JSE also means that YeboYethu shareholders will have wider and easier access to professional broking services offered by JSE members,” Joosub said.
YeboYethu shareholders will get easier price discovery as JSE prices are published in most major print and electronic financial publications. They will also receive increased investor protection.
When the scheme was created in 2008, Vodacom issued 14,4m YeboYethu ordinary shares at R25 each. As a result of the public offer, approximately 102 000 qualifying black investors bought a stake in Vodacom South Africa. It resulted in YeboYethu owning up to 3,44% of the telecoms company. — (c) 2016 NewsCentral Media