Tiger Brands receives approval for secondary listing on A2X Markets

SOUTH AFRICA – South Africa’s largest food manufacturer, Tiger Brands, has announced that its ordinary shares will be listed and traded on alternate exchange, A2X Markets on 26 October 2021.

Tiger Brands, with brands including All Gold, Black Cat, Albany, Koo and Jungle Oats, would retain its primary listing on the JSE and its issued share capital would be unaffected by its secondary listing on A2X.

“Our listing on A2X provides our shareholders with the choice to transact our shares on an additional platform and capture the benefits it offers. In addition, it supports the development and growth of a healthy capital market in South Africa,” Tiger Brands chief financial officer Deepa Sita said.

Tiger Brands’ listing on A2X brings the number of instruments on the alternative exchange to 57, with a combined market value of R5-trillion.

The company joins other well-known SA retail and fast-moving consumer goods companies on the exchange, including Famous Brands.

The branded food services business, listed its ordinary share on the platform and commenced trading on November 2020.

The restaurant franchisor with a then market capitalization of R4.4 billion (US$290 million), also retained its primary listing on the Johannesburg Stock Exchange (JSE).

A2X is a licensed stock exchange authorised to provide a secondary listing venue for companies and is regulated by the Financial Sector Conduct Authority and Prudential Authority, South African Reserve Bank in South Africa in terms of the Financial Markets Act 19 of 2012.

“Tiger Brands is home to a large number of iconic South African brands and we are delighted to have a heritage company of this calibre on board as we celebrate A2X’s fourth birthday.

“Their listing on A2X will enable its shareholders to capture the advantages of A2X’s lower cost structure, narrower spreads and added liquidity,” Kevin Brady, the chief executive of A2X Markets, said.

In its half-year period ended March 31, Tiger Brands reported a 21% rise in profit.

Headline earnings per share – the main profit measure – from continuing operations rose to 741 cents compared with 613 cents a year earlier.

The strong result was helped by strong revenue growth in the first quarter while cost saving and efficiency initiatives gained traction across all segments of the portfolio.

The second quarter performance was interrupted when the government tightened its Covid-19 lockdown measures towards the end of 2020 during the second wave of the pandemic.

The food processor’s revenue increased by 8% to R16.4 billion (US$1.18m), underpinned by price inflation of 9%. This was offset slightly by an overall volume decline of 1%.

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