Chemical group Sasol will list on the low-cost A2X exchange in February, increasing the number of securities available for trade on the exchange to 34 with a combined market capitalisation of more than R2-trillion.
A2X provides a secondary listing venue for companies and began trading in October 2017, serving as a rival to the JSE, which is under pressure amid declining trades as foreign investors sell off SA stocks.
In 2019, foreigners sold off R114bn worth of SA equities. This trend has continued in 2020, with foreigners selling off about R2bn as of Friday, according to JSE markets statistics.
“Sasol’s decision to list on A2X is part of the company’s commitment to continually find ways to increase value for shareholders as well as provide them with a variety of trading venue options,” said Sasol CFO Paul Victor.
“Sasol is one of SA’s most well-known and iconic companies and we are delighted to be welcoming them onto our platform,” said A2X CEO Kevin Brady.
Sasol would benefit from the direct saving of lower transaction fees on A2X and from the indirect savings that accrue due to narrower spreads and increased liquidity, Brady said.
Sasol, which will list on the A2X on February 3, will retain its listings on the JSE and New York Stock Exchange.
A2X has listings from many sectors, including media, mining, banking, retail, fast-moving consumer goods, financial services, insurance, health care and telecommunications.
On Friday, Sasol said it is expecting a “largely strong” operational performance for its year to end-June 2020, though due to a weakening global growth outlook, sales at its performance chemicals business are expected to remain flat to slightly below 2019’s levels for the same period. This excludes its Lake Charles plant in Louisiana, US.
Total sales volumes for that business are expected to be 7%-9% higher, Sasol said.