City Lodge to list on the A2X
The hotel company will become the 35th company to list on the exchange.
Hotels group City Lodge has been approved for a secondary listing on the A2X from March 11.
City Lodge’s listing will bring the number of securities available for trade on the exchange to 35, with a combined market capitalisation of R2-trillion.
City Lodge CEO Andrew Widegger said on Wednesday the secondary listing would enable investors to save money through the A2X’s low cost structure, while also potentially attracting new investors. The group operates more than 7,000 rooms across SA, Kenya, Namibia, Tanzania, Mozambique and Botswana.
A2X CEO, Kevin Brady said: City Lodge has been a leading South African brand for over three decades and we are delighted to have their shares available for trade on our platform. They will be the first hotel group to benefit from a secondary listing on A2X as our low fee structure has been shown to narrow spreads and attract new liquidity thus helping to grow the overall market.”
City Lodge's listing will bring the number of securities available for trade on A2X to 35 with a combined market capitalisation of about R2 trillion. A2X has listings from many key sectors, including media, mining, 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 in terms of the Financial Markets Act. A2X began trading in October 2017 and has eight approved brokers, including five of the top six largest brokers as measured by value traded.