Dimension Data Holdings is to seek regulatory approval for a primary listing on the London Stock Exchange, with a secondary listing on the JSE.
Chairman Jeremy Ord says the move follows the clarification in finance minister Trevor Manuel`s budget speech regarding the conditions for South African companies to establish a primary listing offshore.
He says the board feels the group meets all the criteria and adds that should approval be granted, Dimension Data would qualify for inclusion in the FTSE-100, where it would be ranked 69th in terms of current data.
"We would certainly be among the top six stocks on the LSE," he says.
The listing will provide capital for future growth and globalisation plans, but the group does not yet know how much will be raised or how many shares will be issued.
Ord says although the company was mulling a Nasdaq listing, it decided London was the most appropriate exchange.
Although several directors will be moved abroad, including Steve Joubert, Etienne Reinecke and Don Smyth, the group has been developing South African management to take over, which has meant that these directors have not been involved locally for 18 months.
"The transfer of skills has been seamless," Ord says. He adds that the group will not simply move South Africans overseas, as management in London will come from the group`s operations worldwide.
He says the listing will not only enhance the group`s access to capital and acquisition currency, but raise its profile among its multinational customer base as well as the international investor community.
"It would also boost the group`s ability to attract and retain the scarce professional and technical skills required to implement our globalisation strategy."
Ord does not rule out a future Nasdaq secondary listing in addition to retaining the JSE one. "We will evaluate other secondary listings and look again at Nasdaq later if it`s appropriate," he says.
Existing Dimension Data shareholders who continue to hold shares in the JSE secondary listing will benefit from the group`s enhanced growth and earnings prospects, he says.
The group derives 27% of its revenue in SA. Research and development will still be undertaken in SA as it is "very cost effective. We see no reason to take that away."
The market welcomed the news, with the share rising R4.80 or 10.41% to R50.90 after 1 318 deals.
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