Huge Group Limited has announced that its shares have been approved for listing on A2X Markets from 10 April 2018, making it the first telecommunications company to list on the exchange.
In a statement issued on Wednesday (4 April), Huge said that it will retain its primary listing on the JSE and its issued share capital will be unaffected by its secondary listing on A2X.
A2X Markets (A2X) is South Africa’s newest stock exchange and began trading on 6 October 2017. It competes directly with the JSE and provides an alternative platform for companies to secondary list and trade their shares.
“This was not a very difficult decision to make. There are no additional costs to Huge of listing its shares for trading on A2X, there is no additional administrative burden and the continuing obligations are easy to fulfil,” said CEO of Huge Group Limited James Herbst.
“The rationale for this secondary listing was mainly to bring the prospect of lower transaction costs to investors who trade our shares. We believe that A2X will bring market efficiencies which our shareholders do not enjoy currently – we expect the double, being the bid offer spread, on our shares to narrow.
“We welcome the competition that A2X will bring to the market and the benefits that prospective investors and existing shareholders will derive from this type of stock exchange,” he said.
Huge listed its ordinary shares on the JSE in August 2007 and today has a main board listing under the mobile telecommunications list which includes Blue Label, MTN and Vodacom.