Listed ICT firm, EOH Holdings (EOH) launched its American Depositary Receipt (ADR) programme in the United States through a sponsored programme with BNY Mellon.<\/p>\n
The South African based group is listed on the main board of the Johannesburg Stock Exchange in the Computer Services sub-sector with a market capitalisation of over R10.4 billion (US$1 billion).<\/p>\n
Listed in 1998, the company has delivered strong financial results reflected in its compounded annual growth rate of 45% over the past 16 years.<\/p>\n
\u201cThe launch of our ADR programme will enable international investors interested in companies in emerging markets to more easily invest in EOH,\u201d said Asher Bohbot, EOH CEO.<\/p>\n
\u201cEOH offers good growth prospects as well as annual dividends.\u00a0 We operate predominantly in South Africa but also have operations in 22 other African countries. We are consolidating and expanding our African footprint and our service offerings to existing clients in the region. We will continue to grow aggressively, both organically and through acquisitions.\u201d<\/p>\n
Lauren de Klerk, Vice President of BNY Mellon’s Depositary Receipts business, said: \u201cWe look forward to working with EOH to unlock the potential of the US investment community.\u201d<\/p>\n
BNY Mellon has launched over 60 American Depository Receipt Programs, making South African companies easily tradable for US investors.<\/p>\n
Shoprite, Growthpoint, Redefine, Blue Label Telecoms, Cashbuild, Sibanye Gold, Mix Telematics and Clover launched programs in 2013 and there are several\u00a0 in the pipeline for 2014, the financial services firm said.<\/p>\n
\u201cInvestor demand for South African stocks is high. American investors prefer to invest in ADRs, rather than foreign ordinary shares, as the custody costs and brokerage costs are cheaper, investors are often precluded from investing offshore and ADRs are easily accessible through their brokers,” de Klerk said.<\/p>\n
EOH 10Gbps fibre service goes live<\/strong><\/a><\/p>\n EOH lifts earnings by 40%<\/strong><\/a><\/p>\n