4 Africa Exchange (4AX), a stock exchange specialising in listing the equity and debt of small-to-mid-sized companies, will be rebranded as the Cape Town Stock Exchange (CTSE) from October 1, following its relocation to a new head office in Cape Town.
4AX is one of two fully fledged, licensed and regulated stock exchanges in South Africa, with both an equity and a debt listing licence. The market capitalisation of the equity and debt listed on the exchange was about R6.67 billion.
The exchange said in a statement the relocation and name change would have no impact on its operations to existing clients. The Financial Sector Conduct Authority approval for the name change and relocation had been submitted, and the exchange was on track to go live with the new brand on September 30.
The exchange would still have a presence in Joburg, and would continue to work with companies all over the region, chief executive Eugene Booysen said.
4AX Registry Services and 4AX Debt Services would be rebranded as CTSE Registry Services and CTSE Capital Solutions, respectively.
“We’re looking forward to making our home in one of the world’s favourite cities. Much like our business, Cape Town is synonymous with growth, innovation and a focus on technological development, so we know it’s going to be a great fit,” said Booysen.
The relaunch was part of 4AX’s growth strategy – not only as a business, but also for listed companies and investors, and the economy.
With the move, the focus would remain on small and medium-sized companies. “We believe these growing enterprises offer huge potential to investors. They and the people who make them tick are this country’s real assets,” said Booysen.
The CTSE’s cloud-based platform and reduced fees would make listing on a stock exchange a simple and affordable option for these businesses, he said.
He said South Africans needed to think differently about capital raising on stock exchanges. “This is why we’ve focused on the smaller things and changed the system to offer a service that makes capital markets more inclusive,” he said.
Yaw Peprah, the acting chief executive of investment and trade promotion agency Wesgro, said “the opening of the CTSE signifies Cape Town’s capabilities when it comes to landing significant business for the region, reinforcing our place as the financial services hub on the continent”.
The service economy contributes about 75.5 percent to the Western Cape’s gross domestic product, and this move was critical for medium-to-large businesses, said Peprah.
He said the CTSE would provide a platform for existing funders to gain exposure to quality assets, as well as enhanced investment opportunities.
“As Africa’s tech capital, we have the ecosystem to support tech-led, innovative business solutions,” he said.
Current listing on 4AX include iHelathcor, NWK Holdings, GAIA, Heartwood, Assupol and CA Sales Holdings.
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