The investment arm of well-known agri company TWK – TWK Investments Limited – became the first formal listing on the new Cape Town Stock Exchange (CTSE). The company, based in Piet Retief in Mpumalanga, is primarily active in its home province and KwaZulu-Natal but has business interests in various other provinces, as well as the Kingdom of Eswatini.
“We are thrilled to announce that TWK is the ‘first formal listing’ on the rebranded CTSE, previously 4 Africa Exchange,” said André Myburgh, CEO of TWK, in a statement.
The board of directors decided to shift the company’s listing from ZAR X to CTSE, as well as to conduct a secondary listing on the A2X stock exchange, in order to boost the share’s liquidity and tradability. This decision was adopted by the company’s shareholders on 21 September 2021.
“We are listing 38 951 986 ordinary shares by way of introduction at R35 per share, which places a market capitalisation on the company of nearly R1,4 billion.”
Boosting tradability
The key reason for the CTSE listing as a primary listing, paired with a secondary listing on A2X, according to Eddie Fivaz, TWK’s CFO, is that it will likely boost the ability and liquidity to trade TWK shares.
Due to the open market access advancements linked with CTSE and A2X, the goal is to position the company strategically to attract institutional investors soon.
Another goal is to improve the company’s ability to raise funds and to list both equity and debt on a single primary exchange. TWK stockholders who have access to the CTSE client protection fund will benefit from the new listing.
TWK says it remains upbeat about South Africa’s agricultural prospects. The intermediate results for the six months that ended on 28 February 2021, announced on 7 April, mirrored this optimism.
“As the impact of Covid-19 fades, market circumstances improve, increased timber export sales are accomplished and returns on new investments increase, the TWK Group forecasts a full recovery of lost growth this year.”
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