Exxaro brings coal to A2X


Exxaro brings coal to A2X

Published Date: 2020-03-26 | Source: Stephen Gunnion | Author: Stephen Gunnion

Exxaro brings coal to A2X

The resources group will become the third from the sector to list on the alternative exchange.

Exxaro Resources will become A2X Markets' 36th listing when it takes to the board of the alternative exchange next week. It will also be the third company from the mining sector to list, joining African Rainbow Minerals and Tharisa Plc.

The black-empowered coal and heavy minerals company said one of the keys to remaining relevant was to incorporate emerging technologies into its business operations and listing on A2X was an example of this. It said A2X was leveraging technology in an effort to reduce trading costs which would lead to cost savings for Exxaro investors. It will retain its primary listing on the JSE and its issued share capital will be unaffected by the secondary listing.

A2X set itself up a trading rival to the JSE in October 2017. It said its advanced international exchange technology meant it was 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.

The Exxaro listing will take the combined market capitalisation of securities available for trade on A2X to R1.5 trillion. Sectors represented on the exchange include media, mining, banking, property, fast-moving consumer goods, financial services, retail, insurance, healthcare and telecommunications. A number of exchange-traded products are also listed on the exchange, including Absa's three precious metal exchange-traded funds (ETFs) and Investec's exchange-traded notes (ETNs).

Exxaro's shares rose 9% to R95.34 yesterday, outpacing an 8.3% rise in the JSE's Mining Index.

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