Secondary listing for Spar group

Henry

While most equity investors have their eyes set on trading company shares on the JSE, secondary listings on the A2X stock market are becoming increasingly popular. A total of 184 instruments have already been listed on this market. The A2X boasts a market capitalization of almost R9.4 billion (“trillion”) and a monthly trading volume of more than R15 billion.

The latest group to make its debut on the A2X is Spar, whose shares will be available for trading on this exchange from 15 May. Spar has wholesale warehousing and distribution operations in Southern Africa and Europe serving more than 4,500 stores through 14 distribution centers. The Spar group operates in 11 countries and recorded a turnover of R149 billion in the financial year to the end of September 2023.

The group owns the Spar retail brand in South Africa, Switzerland, South West England, Ireland, Poland and via a joint venture in Sri Lanka. The international parent company is present in 44 countries, with 240 distribution centers serving 13 million customers daily.

In Southern Africa, Spar has more than 1,000 grocery stores, almost 900 Tops liquor stores, 400 Build it stores and 125 pharmacies. Tops and Build it are South Africa’s largest beverage and building supplies retailers.

According to Angelo Swartz, executive group head of Spar, the secondary listing will give investors easier access to the group’s shares at very low transaction costs.

“The Spar model is primarily fueled by the power of entrepreneurial independent retailers at the heart of their communities. Listing on the A2X secondary listing platform offers shareholders the opportunity to save money when transacting by taking advantage of the platform’s low fee structure, narrower spreads and increased liquidity,” said Swartz.

According to Kevin Brady, CEO of the A2X, Spar is a trusted brand in South Africa and around the world. “We look forward to expanding the many benefits that a listing on the A2X brings to Spar’s investors.”

According to Brady, the A2X plays an integral role in expanding South Africa’s financial market landscape. “Launched in 2017, A2X is run by a highly experienced team from the financial services and technology sector. This experience, combined with advanced technology, stable systems and an agile environment, enables the exchange to offer effective competition to the market and bring real savings.”

Spar retains its listing on the JSE and its issued share capital will not be affected by its secondary listing on A2X. The A2X is regulated, in terms of the Financial Markets Act, by the Conduct Authority for the Financial Sector as well as the South African Reserve Bank.