4 Africa Exchange (4AX) has secured a healthy pipeline of potential listings, cross-cutting industries such as agriculture, information technology and tourism and hospitality, besides others, with the first listing scheduled for the end of August or the first week of September.
Of about 40 potential listings, some 20 were currently in the discussion phase, said 4AX CEO Fay Mukaddam at the Johannesburg Chamber of Commerce and Industry’s ‘First Mondays’ engagement in Johannesburg, on Monday.
Initially, 4AX will focus on targeting unlisted companies in South Africa, before moving up through the Southern African Development Community countries, then the rest of Africa, into the countries within the Brazil, Russia, India, China and South Africa, or Brics, block of economies and, finally, Asia.
However, “slow and steady” will be the name of the game as the new exchange works to become more cost-effective, inclusive, collaborative and disruptive.
“We want to do things differently on every conceivable level,” she said, adding that if, in 100-plus years, 4AX was “anything like the incumbent”, referring to the JSE, it would mean it failed.
“We are not going toe-to-toe with the JSE. We have a different model and are offering an alternative listing option,” she assured.
The exchange will lean heavily on technology, leveraging its own platforms to ensure a “shareholders democracy” and enabling the “ordinary individual off the street” to be able to participate through mobile platforms.
Further, the exchange aimed to offer a platform for trade in a transparent, accessible, understandable and inclusive manner, with ambitions of reducing previous “burdensome” layers under cover of regulations and leveraging its own central ownership registry.
She highlighted that the bourse was currently targeting unlisted companies that had not been listed for a number of reasons.
The bourse first started out with an over-the-counter (OTC) focus, to allow regulated OTC trade, but had broadened its ambitions to include medium-sized enterprises, restricted schemes, special purpose vehicles and real estate investment trusts.
The Financial Services Board granted 4AX its license in August last year.