Equites lined up for July listing on A2X

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Equites lined up for July listing on A2X

Published Date: 2019-06-25 | Source: Stephen Gunnion | Author: Stephen Gunnion

Equites lined up for July listing on A2X

The property fund sees a secondary listing on A2X as an opportunity to attract new investors and deliver more value for shareholders.

Equites Property Fund will become the third property group to list on A2X Market when its shares start trading next Monday. The real estate investment trust said listing on the exchange was an opportunity to attract potential new investors and deliver more value to shareholders by providing investors with the choice of a low-cost venue on which to transact its shares.

A2X set itself up a trading rival to the JSE in October 2017. It says its advanced international exchange technology means it is able to provide an efficient and cost-effective trading venue to secondary list and trade shares. It claimed end-to-end costs of transacting on the platform were 50% lower than current trading costs in SA. It only offers secondary listings for companies already listed on another exchange. Equites said it would retain its primary listing on the JSE and its issued share capital would be unaffected by the A2X listing.

Last week, NEPI Rockcastle's shares started trading on the exchange after the Central and Eastern European property investor was also granted a listing, overtaking Growthpoint as the largest property fund on A2X with a market capitalisation of R76.4 billion. Equites is worth just under R11 billion.

The Equities listing will take the number of securities available for trade on A2X to 22 with a combined market capitalisation of over R2.4 trillion. Sectors represented on the exchange include media, mining, banking, property, fast-moving consumer goods, financial services, retail, insurance, healthcare and telecommunications. Nine approved brokers account for about 50% of market activity.

Its shares declined 1.3% to R21.03 yesterday.





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