South Africa’s Exxaro Resources gets approval for a secondary listing on A2X

SOUTH AFRICA – Exxaro, a coal and heavy mineral companies in South Africa, with an asset portfolio of coal operations and investments in iron ore, pigment manufacturing, renewable energy (wind), and residual base metals, has been approved for a secondary listing on the A2X from April 2.

A2X provides a secondary listing venue for companies and began trading in October 2017.

“Mining still plays a significant role in the economy of our nation. Our listing on A2X supports our commitment to investors and the South African marketplace,” Exxaro CEO Mxolisi Mgojo said.

“At Exxaro we believe that one of the keys to remaining relevant is to incorporate emerging technologies into our business operations and our listing on A2X is an example of this. A2X is leveraging technology in an effort to reduce trading costs which will lead to cost savings for Exxaro investors.”

“We are pleased to be giving Exxaro shareholders the opportunity to trade across markets and transact shares at the best price available. We look forward to adding Exxaro to the growing number of companies listed on A2X,” A2X CEO, Kevin Brady said.

A2X has listings from many other key sectors, including media, banking, retail, FMCG, financial services, insurance, healthcare and telecommunications.

In addition, A2X has also attracted listings in exchange traded products including Absa’s three precious metal exchange traded funds and Investec’s exchange traded notes.

A2X is a licensed stock exchange which provides a secondary listing venue for companies. It is regulated by the Financial Sector Conduct Authority and the Prudential Authority (SARB) in terms of the Financial Markets Act.

The JSE, South Africa’s oldest and biggest bourse, experienced a reduction in the level of activity in primary markets, with fewer new equity listings.

Revenue decreased by 5 percent in the year ended December 2019 to R147 million (US$8.21m) from R155m (US$8.65m) in 2018 owing to significantly fewer initial public offerings (IPO) for the year as there were five IPOs versus 12 IPOs in 2018.

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