TWK Investments, well known in the South African agriculture sector, yesterday became the “first official listing” on the Cape Town Stock Exchange (CTSE).
The CTSE was previously known as 4 Africa Exchange (4AX).
André Myburgh, the chief executive of Piet Retief, Mpumalanga-based TWK, said in a statement yesterday that their board took a decision, approved by its shareholders this month, to move its listing from the ZAR X exchange to CTSE, as well as to undertake a secondary listing on the A2X stock exchange, in order to increase the liquidity and trade-ability of the share.
“We are listing 38 951 986 ordinary shares, by way of introduction, at R35 per share, which places a market capitalisation of nearly R1.4 billion,” he said.
From research to sustainable farming practices and agricultural innovation, TWK sees itself as a corporate citizen dedicated to the future of South Africa through a commitment to sustainable development and resource consumption across a number of agri-related industries.
It operates in the agriculture, forestry, grain, financial services and motor industries and provides jobs to some 3 184 employees.
TWK chief financial officer Eddie Fivaz said the reasons for the CTSE listing, as a primary listing, coupled with a secondary listing on A2X, was to enhance the ability and liquidity to trade in TWK shares.
The listings would also position the company better to attract institutional investors in the near future due to open market access developments associated with CTSE and A2X.
It would promote the company’s ability to raise capital and list equity and debt on a single primary exchange, and provide additional protection to TWK shareholders having access to a CTSE client protection fund, he said.
TWK remained optimistic about the outlook for agriculture in South Africa. The group expected a full recovery of lost growth this year as the effect of Covid-19 subsided, market conditions improved, increased timber export sales were achieved while there had also been an increase in returns on new investments.
The outlook for the year to August 31 was promising and the group was on track to achieve its strategic medium-term targets.
The acquisition of a 51 percent stake in Sunshine Seedlings Services as well as the Peak Timbers forestry assets had been implemented successfully and were expected to contribute to further growth.
“Management holds the view that the financial year ended August 31, 2021 will substantially outperform the previous year’s results. TWK remains well positioned for growth, with a focus on projects across all segments with expansions, acquisitions, mergers and strategic alliances,” said Myburgh.
edward.west@inl.co.za
BUSINESS REPORT ONLINE