Financial services provider Absa has become the first major South African bank to invest in startup stock exchange A2X Markets, which began trading in October 2017.
Absa, a diversified financial services group with a presence in 12 countries in Africa, participated in the capital raise launched by A2X towards the end of 2019.
“The team at Absa Corporate and Investment Banking 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,” comments Absa head of equities Quintus Kilbourn.
“Absa’s investment in A2X is a vote of confidence for what we are building in South Africa. 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,” says A2X CEO Kevin Brady.
A2X has listings from firms in key sectors of the South African economy, including mining, media, banking, retail, financial services, insurance, healthcare and telecommunications.
Despite current market conditions, the pipeline of issuers remains healthy and trade is growing steadily, it notes.