Johannesburg Stock Exchange-listed African Rainbow Minerals (ARM) has received approval from its board for a secondary listing on the A2X, from November 29.
ARM will retain its primary listing on the JSE, with ARM shares available for trade on both exchanges from the A2X listing date.
ARM is the first company from the mining sector to list on A2X, which is attracting listed companies from across the various sectors.
ARM’s listing will bring the number of companies available for trade on A2X to 14 with a combined market capitalisation of over R600-billion. A2X also has banking, property, fast moving consumer goods, financial services, insurance and telecommunications.
“As A2X gains greater traction, more companies are seeing the benefits that a secondary listing can bring to their shareholders. Not only does it provide an alternative venue on which to transact, but the low fee structure drives significant savings for the end investor as it creates a better quality market by narrowing spread and attracting new liquidity,” A2X CEO Kevin Brady said in a release to Creamer Media's Mining Weekly Online.
A2X, which is regulated by the Financial Sector Conduct Authority and the South African Reserve Bank under the Financial Markets Act, began trading in October last year. It has nine approved brokers who account for some 50% of market activity.