Johannesburg - Vodacom’s Black Economic Empowerment (BEE) scheme, YeboYethu, listed on the JSE this morning, opening at R55 a share.
YeboYethu was established in 2008 with the intention of proving previously disadvantaged South Africans with a stake in Vodacom, SA’s largest cellular operators. When it launched, Vodacom issued 14.4 million YeboYethu shares at R25 each, with 102 000 black investors buying in and the scheme owning 3.44 percent of Vodacom.
Currently, 14.4 million YeboYethu shares are owned by 87 534 black investors. Before today, the shares traded over the counter after the lock in period ended in February 2014. The stock last closed at R53.01 a share and climbed to R55.50 a share by 9.30 am this morning.
Vodacom CEO Shameel Joosub says “we are pleased with what YeboYethu has achieved in terms of true broad-based empowerment in South Africa. Its transition to the JSE, one of the world’s most highly regarded stock exchanges, is a significant milestone for a large group of shareholders who can now trade their ordinary shares on the JSE BEE segment.
Read also: Vodacom: YeboYethu shares open for trading
“Regulatory certainty aside, one of the major advantages of this move is an anticipated increase in liquidity, which can only be positive for buyers and sellers alike. Being listed on the JSE also means that YeboYethu shareholders will have wider and easier access to professional broking services offered by JSE Members.”
YeboYethu is the third company to list on the JSE’s Empowerment Segment, which currently has a total market capitalisation of about R7.46 billion. The board was developed after the Financial Services Board required empowerment schemes to cease OTC trade and trade on a licensed exchange.
“These are exciting times for the YeboYethu BEE scheme as we’re increasing the protection of YeboYethu investors, ensuring that they continue to maximise value from their shares, using the JSE BEE Segment,” says Zarina Bassa, YeboYethu chairman.
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