SA startup stock exchange A2X Markets has netted an undisclosed amount in investment from Absa bank.
In an announcement yesterday, the startup said Absa has become the first major SA bank to invest in the stock exchange which was founded in 2014 and began trading in 2017.
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Absa, which has a presence in 12 countries in Africa, participated in the capital raise launched by A2X towards the end of 2019.
According to a page on its website, A2X is owned by a small group of founding shareholders, management and staff. In addition, African Rainbow Capital holds a 20% stake and broad-based empowerment company Nala a 10% stake.
SA startup and stock exchange A2X Markets was founded in 2014 and includes African Rainbow Capital as a key shareholder
A2X claims that through the use of the latest technology and applying modern and innovative business practices, it is able to provide the SA marketplace with a choice of trading venue at a much-reduced cost,
Many of South Africa’s top companies are already listed on A2X including eight Top40 constituents, three Absa precious metal exchange-traded funds (ETFs) and two Investec exchange-traded notes (ETNs).
Absa head of equities Quintus Kilbourn said in the statement that: “The team at Absa CIB are always looking for innovative ways to save money for our clients and support the industry in which we operate. As a broker, we believe in an efficient and progressive marketplace and our investment in A2X shows our support for this. ”
A2X CEO Kevin Brady (pictured above) called Absa’s investment in A2X a “vote of confidence”. “Effective competition in an industry drives market efficiency and this benefits all users, including individual investors and pensioners. By offering lower costs, we are able to create a better market to grow the overall industry,” said Brady.
Featured image: A2X CEO Kevin Brady (Supplied)
