JSE-listed real estate investment trust (Reit) and leading self-storage property fund Stor-Age will list its shares on South African capital market platform A2X Markets (A2X), with shares being made available for trade from 27 September.
A2X noted in a statement that Stor-Age will retain its primary listing on the JSE, and that its issued share capital will not be affected by the secondary listing on A2X. “There is no cost, risk or additional regulatory compliance for Stor-Age as a result of its secondary listing,” it adds.
The company, with a market cap of approximately R6.5 billion, joins other Reits with a secondary listing on A2X, including GrowthPoint, Equites Property Fund, Fairvest, Nepi Rockcastle, SA Corporate Real Estate and recently Mas PLC.
“Our secondary listing on A2X complements our primary listing on the JSE, providing our shareholders with the benefit of an additional platform on which to trade the company’s shares, added liquidity, narrower spreads and lower exchange fees,” notes Stor-Age CEO Gavin Lucas.
The new listing will bring the number of instruments available for trade on A2X to 72, with a combined market capitalisation of approximately R5.3 trillion.
“We welcome the leading and largest self-storage property fund in South Africa to our market next week,” adds A2X CEO Kevin Brady.
“We look forward to demonstrating the benefits that a listing on A2X will bring to Stor-Age investors. These include cost savings, added liquidity and the opportunity to attract new investors.”
Speaking to Moneyweb, Brady says A2X, which will turn five years old in October, initially experienced structural challenges that made it difficult for brokers to trade on the market.
However, he notes that A2X is seeing a steady increase in activity, with an average market share of the 71 securities listed at 3% of total continuous trade across the JSE and A2X in September.
“I must say that the trend on A2X is upwards, but month-on-month is not steady. We had a huge growth period between September and October 2021,” he adds.
Brady says A2X encourages all companies with primary listings on the JSE and the Cape Town Stock Exchange to have a secondary listing on A2X.
“A secondary listing on A2X brings down the cost of buying and selling on the market by over 50% which has a positive impact on the price. A2X offers lower exchange fees and additional liquidity that can’t be found on the JSE, and better price formation, which is material,” he adds.
“There is no additional cost, risk or additional regulatory compliance required to list on A2X, which has motivated companies to take up a secondary listing with A2X. This is also for the benefit of their shareholders and most importantly to drive competition.”
Nondumiso Lehutso is a Moneyweb intern.