EOH Holdings has become the latest local IT company to launch an American Depositary Receipt (ADR) programme in the US, going the route of a sponsored programme with BNY Mellon.
The group, with more than 7 500 staff and a market capitalisation of R10.4 billion, believes this will open it up to more attention from international investors, who already make up a sizeable percent of its investor base, says CEO Asher Bohbot.
"The launch of our ADR programme will enable international investors interested in companies in emerging markets to more easily invest in EOH," says Bohbot. He notes the group, which mostly operates in SA, also has operations in 22 other African countries.
"We are consolidating and expanding our African footprint and our service offerings to existing clients in the region. We will continue to grow aggressively, both organically and through acquisitions." It has between about 5% and 10% of local market share.
The bid is also expected to create interest in the listed outsourcing company, which could benefit from providing niche software and services into international markets, Bohbot adds.
The company, which enters a closed period at the end of the month, provides solutions and services in its three main areas of business: IT, industrial technologies and business process outsourcing.
Each EOH depository receipt represents one ordinary share and trades on the over-the-counter market in the US under the symbol 'EOHYY'. EOH ordinary shares, on the JSE, last traded at R91.
Last April, Blue Label also issued an ADR programme to diversify its shareholder base. BNY Mellon has launched over 60 ADR programmes, including for companies such as Shoprite, Growthpoint, Redefine, Cashbuild, Sibanye Gold, Mix Telematics and Clover.
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