Invicta to have a secondary listing on A2X

Christo Wiese-chaired Invicta, which operates in the industrial consumables, capital equipment and spare parts industries, is the latest company to join A2X, the local bourse launched in 2017. 

The listing increases the number of securities available for trade on A2X to 28, with a combined market capitalisation of more than R2.4-trillion.

The company said on Tuesday it would take a secondary listing on A2X on August 13, with shares worth R3.2bn.

Invicta, which employs more than 4,000 people worldwide, said on Tuesday the secondary listing on A2X would not affect its primary listing on the JSE.

A2X provides a secondary listing venue for companies.

“We are committed to creating long-term value for our stakeholders and believe our secondary listings on A2X further underpin this commitment.  Not only does it align with global best practice but it [also]gives our investors a choice of venue on which to transact and an opportunity to save money,” Invicta CEO Arnold Goldstone said. 

A2X CEO Kevin Brady said the listing provided Invicta with an additional venue for the company’s shareholders to transact their shares cheaper.

“End-to-end transaction fees are on average 50% lower on A2X. In a scenario where 20% of all activity in all shares are transacted on A2X, the broking community would save around R200m per annum in exchange fees,” he said.

He said the secondary listing would complement Invicta’s primary listing on the JSE.

“South Africa is seen by many international investors as a high-cost destination and, as a result, a lot of short-term flow avoids the South African market. A2X gives investors a choice of venue on which to transact and in a market where there has historically only been one provider, it creates a more responsive, efficient and client-orientated industry,” he said.

He said in line with international experience, the lower cost of doing business had a positive effect on market quality because of increased liquidity and narrower bid-ask spreads — the difference between the highest price a buyer is willing to pay for an asset and the lowest price that a seller is willing to accept.

njobenis@businesslive.co.za