EOH gets approval for secondary listing on A2X
EOH has been approved for secondary listing on A2X Markets and its ordinary shares will be available for trade from Friday 13 August 2021.
In a statement, the company says it will retain its listing on the Johannesburg Stock Exchange (JSE) and its issued share capital will be unaffected by its secondary listing on A2X.
EOH is one of South Africa’s largest technology services companies and has a wide range of solutions in industry consulting, IT services, systems integration, software, industrial technologies and business process outsourcing.
In its latest trading update, the technology group said it is focusing on quality earnings, as it seeks to rehabilitate itself after a series of costly missteps by the previous management team.
The JSE-listed group last week provided a pre-closing update, saying it expects to post a gross profit margin improvement of four to six percentage points, compared to the prior full year.
Stephen van Coller, EOH group CEO, recently told ITWeb that in its heyday, the EOH share price of R175 at one point and it went down to about R7 now.
“So from a R25 billion market cap, to a R1 billion market cap, shareholders have lost R24 billion,” he said.
Megan Pydigadu, EOH group financial director says: “EOH’s decision to list on A2X will give our shareholders access to an additional platform with lower transaction fees. This is in line with the group’s commitment to continuously find ways to increase value for shareholders.”
Kevin Brady, CEO of A2X Markets, adds: “EOH’s ability to use the latest technology to cut costs and drive more efficient business practices resonates with us and we look forward to demonstrating the benefits a listing on A2X brings to their shareholders.”
The listing on 13 August will bring the number of instruments available for trade on A2X to 53 with a combined market capitalisation of over R4 trillion.
EOH joins other companies on A2X, including Naspers, Prosus, Sanlam, Sasol, Aspen Pharmacare, Exxaro, AVI, Mr Price, Growthpoint, Momentum Metropolitan and Famous Brands.