Famous Brands widens choice by listing on A2X
The listing of the fast food group brings number of listings on alternative bourse to 38
Famous Brands, the holding company that owns fast food brands Steers and Debonairs, has received approval for a secondary listing on alternate exchange A2X Markets.
Shares in the Johannesburg-based company, which will retain its primary listing on the JSE, will begin trading on A2X from November 30.
A2X, which already has 37 listings with a total market capitalisation of R2.2-trillion, told Business Day on November 15 that it planned to lure secondary listings from all JSE Top-40 counters by 2023, a move that it claims could save the asset management industry more than R1bn a year.
“We are delighted to now be bringing choice and also potential savings to Famous Brands’ shareholders too,” A2X CEO Kevin Brady said.
“We look forward to welcoming them on to our platform next week.”
By offering brokers an additional platform on which to trade shares, A2X can enable better pricing in the form of narrower bid offer spreads. A study conducted by the exchange in August found that a 1c narrowing on both the bid and offer prices of the nine Top-40 shares with secondary listings on A2X would result in a R125m saving when extrapolated over 12 months.
If all Top-40 shares were listed on the exchange, the potential savings in the form of narrow bid offer spreads would climb to more than R1bn a year, according to A2X.
Famous Brands’ listing on A2X next week will bring the number of securities available for trade on the alternate bourse to 38, including Naspers, Standard Bank. Sanlam, Sasol, Aspen Pharmacare, Exxaro, AVI and Mr Price.
A2X is regulated by the Financial Sector Conduct Authority and the Reserve Bank’s Prudential Authority in terms of the Financial Markets Act. — BusinessLIVE
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