SOUTH AFRICA – Johannesburg Stock Exchange (JSE) -listed telecommunications specialist Huge Group has applied to list on the London Stock Exchange’s Alternative Investment Market (Aim), the company has said in a statement.
This secondary listing will see Huge Group retaining its primary listing in Johannesburg through the JSE as well as its listing on South Africa’s A2X Markets stock exchange.
“Following the proposed secondary listing, Huge shares will be available to be traded on the JSE, the A2X and Aim,” the company said in a statement.
“The issued share capital of the company will not be affected by the application,” the statement further added.
Huge Group said it will now begin the process of appointing advisors to assist it with the London listing. It did not say why it had chosen to seek the listing.
“Following the proposed secondary listing, Huge shares will be available to be traded on the JSE, the A2X and Aim”
Chief Executive Officer James Herbst said the planned listing will hopefully unlock shareholder value and attract new investors.
He said there is a significant amount of money in international markets that is not necessarily finding its way to the JSE and a secondary listing in the UK could help tap into that.
He added that there is almost no downside risk to listing on Aim, but plenty of potential upside stressing that the costs associated with the London listing will not be significant.
“At worst, we’ll be in the same low-liquidity position. But maybe we can raise capital directly from source. And it might give us the platform and an audience to start promoting Huge outside of South Africa on the basis of South Africa being a good investment destination,” Herbst said.
“We are prepared to be proactive and try things, provided the downside is limited. This move demonstrates our proactive approach,” he concluded.
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