Pick n Pay readies secondary listing on A2X to increase liquidity, save costs
SOUTH AFRICA – South Africa based grocery retailer, Pick n Pay, has received approval for a secondary listing on A2X Markets (A2X) from 1 November 2022.
The Pick n Pay Group, with a market cap of around R27 billion (US$1.49 billion), will retain its primary listing on the Johannesburg Stock Exchange (JSE).
According to the supermarket chain-store owner, the secondary listing not have an impact on its issued share capital, with the move boosting its liquidity and improve cost savings.
Pick n Pay Group Chair Gareth Ackerman said, “Our listing on A2X means Pick n Pay shareholders will now be able to benefit not only from increased liquidity but from the cost savings accrued through A2X’s low-cost platform and narrower spreads. This is entirely consistent with our strong focus on cost savings within our business to benefit customers.
“Our listing on the A2X will provide a competitively priced choice for shareholders and helps encourage the development of a healthy local market.”
Pick n Pay joins other well-known South African companies on the platform, bringing the number of instruments listed on A2X to 88, with a combined market capitalisation of around R5 trillion (US$276m).
South Africa’s largest food manufacturer, Tiger Brands, listed its ordinary shares on the alternate exchange on 26 October 2022, joining other food sector players such as Famous brands.
“We are delighted to be welcoming the Pick n Pay Group to A2X next week. The group is an iconic and trusted brand, and we look forward to providing Pick n Pay investors with a choice of venue on which to transact and save money,” A2X CEO Kevin Brady said.
A2X is a licensed stock exchange that provides a secondary listing venue for companies. It is regulated by the Financial Sector Conduct Authority and the Prudential Authority (SARB) in terms of the Financial Markets Act.
The listing announcement follows the release of Pick n Pay’s half year results ended August 2022, showcasing a 11.5% growth in group turnover.
This strong turnover growth, in part, reflects the normalization of the environment after the July 2021 civil unrest and Covid-19 liquor trading restrictions last year, which negatively impacted the base.
However, when excluding these disruptions in the base, its estimated normalized H1 FY23 turnover rose by an encouraging 8.2%.
Its gross profit margin increased from 18.2% to 19.4% (R10.0billion (US$542m)) with the pro forma profit before tax in South Africa increasing by 17.1%.
Group pro forma profit before tax rose 22.2%, with a strong performance from TM Supermarkets in Zimbabwe.
For all the latest food industry news from Africa and the World, subscribe to our NEWSLETTER, follow us on Twitter and LinkedIn, like us on Facebook and subscribe to our YouTube channel.
