JSE-listed Growthpoint to become first property firm to list on A2X
The largest listed real-estate company in SA, Growthpoint Properties, will take up a secondary listing on the new A2X Markets exchange on July 18.
It will be the first property company to take up a secondary listing on A2X and the 10th to join the exchange.
Growthpoint will retain its primary listing on the JSE and will not issue any new shares in connection with its secondary listing on A2X. There is no cost, risk or additional regulatory compliance for Growthpoint as a result of its secondary listing on the A2X, the company said.
Growthpoint is a constituent of the top 40 index and has a market capitalisation of R80bn. Group CEO
Norbert Sasse said the listing meant the company would be able to lure new investors.
"Making Growthpoint’s shares available on a second trading platform in SA benefits shareholders and stockbrokers by providing an additional venue to transact with lower costs. We value our primary listing on the JSE profoundly and believe that our secondary listing on the A2X contributes to the growth and efficiency of SA’s financial markets, encourages competition, and aligns with global practices," he said.
Head of investor relations at Growthpoint Lauren Turner said Growthpoint supported free-market principles and best practice, and that A2X was trying to promote both of these facets.
"By listing on the A2X platform … it encourages practices in line with global markets. Five of the top six ranked brokers in South Africa are already trading on the A2X platform," she said.
A2X CEO, Kevin Brady said Growthpoint was A2X’s first property listing and that it would demonstrate the benefits that effective competition in the secondary share market would bring to both Growthpoint and its investors.
A2X began trading in October and now has nine approved brokers and 10 companies listed on its platform. It uses technology developed by the UK’s Aquis Technologies, a division of Aquis Exchange, which includes proven exchange matching and surveillance systems and a clearing platform custom-built for A2X.
"A2X’s market-leading exchange systems are fast and efficient and its surveillance system is programmed to monitor trading across multiple markets to ensure that any trading anomalies are detected early," Brady said.