Capitec, South Africa’s largest digital bank, is about to get a second venue for investors to trade its shares, but the bigger story is what the company has become since it started as a lender 25 years ago.
On Monday, September 7, Capitec’s shares will begin trading on A2X Markets, a tech-driven alternative stock exchange, after the company received approval for a secondary listing on the trading platform. Capitec says it will keep its primary listing on the Johannesburg Stock Exchange (JSE), Africa’s largest stock exchange.
The move, the bank believes, gives investors another venue to trade the bank’s share. It also comes as Capitec evolves beyond traditional banking into a digital platform spanning payments, connectivity, devices, insurance and financial services.
That expansion may help explain how the lender has grown into a R540 billion ($33.8 billion) business serving more than 26 million active clients. Capitec joins rival lenders Absa, Nedbank, Standard Bank and Investec, which already have secondary listings on A2X. The alternative trading venue has grown from three listings at launch in 2017 to more than 175 securities using technology and lower-cost market infrastructure.
Originally published by TechCabal.