|Trustco to list on JSE Africa Board|
|Thursday, 19 February 2009 09:43|
NAMIBIAN micro-insurance and micro-finance lending giant Trustco Group Holdings will today become the first African company to list on the Johannesburg Stock Exchange (JSE)’s Africa Board, a new initiative by the JSE to promote the growth of capital markets in Africa.
Trustco’s historical dual primary listing on the continental bourse coincides with the official launch of the Africa Board, which has attracted the cream of African corporations due to its unique potential to attract much needed foreign capital to African markets. |
Africa Board Executive Head at JSE, Maureen Dlamini said the Board forms part of the Johannesburg Stock Exchange’s long-term development strategy to promote the growth of capital markets on the African continent by giving them greater exposure.
“It has been developed to attract foreign capital to the African market, by allowing investors access to the very exciting opportunities that exist in Africa. Entry into the market is through dual listing onto the Johannesburg Stock Exchange,” said Dlamini.
The Namibia Stock Exchange (NSX) and JSE approved a dual primary listing for Trustco in 2008, opening the doors for entry to the Africa Board, which has received significant attention from top African companies operating outside South Africa.
Trustco is ranked at number four on the NSX, with a share price of N$0.72 and a market capitalisation of N$500 million. Trustco is a high growth Namibian company focussing on micro-insurance, micro-finance, publishing, education and aviation services.
Investors outside Africa own at least 26 percent of Trustco shares, with shareholders in Sweden, the United Kingdom and the United States. The company will however, remain rooted in Namibia where its micro-insurance services and brands have become household names.
Trustco is well known for its aggressive approach to marketing and ability to break with convention in its strategies.
In October 2008, Trustco held a Shareholders Financial Function, marked with a visit to the Queen of Oukwanyama, Martha Muadinomho Kristian Nelumbu at her palace in Oilavati village, Ohangwena Region.
The company has consistently broken new ground in business innovation, with the 2008 introduction of Trustco Mobile’s ‘Free Life Cover’ policies, which allow subscribers using cellular network Cell One to buy life insurance through the purchase of cell phone recharge cards.
Free Life has since paid out a lump sum of N$100,000 to the family of Victor Shimwoshili, a ‘Free Life’ subscriber who died in a road accident. It has also made several other payments to families of subscribers.
Listing on the JSE Africa Board will allow Trustco to showcase its products and innovations on a bigger platform and open new doors for expansion.
According to the Deputy Chief Executive of JSE, Nicky Newton-King, the Africa Board has received positive feedback from African companies since its inception, and the Board’s principals are busy putting in place a plan of action to make it a vibrant platform by the end of 2009.
Dlamini said the Board aimed to list at least five companies by the end of 2009.
Trustco Group Holdings managing Director Quinton van Rooyen is optimistic that Trustco’s entry onto the JSE’s Africa Board will put the company in a better position to sell its products in Africa and significantly improve investor awareness.
“We are well-positioned to take full advantage of all listing benefits and strongly endorse the Africa board’s vision to create wealth for Africa in Africa,” said Van Rooyen. “We will use our listing as a springboard into Africa.”
Van Rooyen sees the listing as an important vantage point and launch pad for the company’s regional expansion strategy, which aims to provide much needed micro-insurance services in countries such as Botswana, Kenya and other markets.
Listing on the JSE Africa Board will directly link Trustco and other African companies to the JSE, which is the most liquid market for equities in Africa. The JSE’s all share index features companies with an estimated collective value of R3.2 trillion.
|Last Updated on Thursday, 12 March 2009 13:42|