Capitec Expands Trading Venues Amidst Digital Transformation
South Africa’s largest digital bank, Capitec, is set to join the ranks of financial institutions with secondary listings on A2X Markets. The move, effective September 7th, will provide investors another avenue to trade Capitec shares alongside the primary listing on the Johannesburg Stock Exchange (JSE).
The significance extends beyond mere market access. This development reflects Capitec’s evolution from a traditional lender into a comprehensive digital platform offering payments, connectivity, insurance, and financial services – an expansion that has propelled it to a R540 billion ($33.8 billion) valuation serving over 26 million customers.
Beyond Banking Services
Capitec’s transformation is evident in its diversified revenue streams:
- Capitec Connect, the mobile virtual network operator (MVNO), now boasts 1.5 million active clients
- Value-added services grew by 38% to R6.1 billion ($377 million)
- Fintech contributes 26% of group headline earnings
The company has also integrated hardware sales through its app, offering devices from Samsung and Apple.
Technology Driving Efficiency
A2X CEO Kevin Brady highlights the exchange’s technology as a key attraction for companies like Capitec. The platform utilizes modern matching engines that pass efficiency gains to users in the form of lower fees – roughly 50% below the primary exchange.
Additional trading tools offered by A2X include:
- Auction on Demand: Allows investors to initiate auctions when specific trades are needed
- Market at Close: Facilitates trading activity at the end of each session
The secondary listing is expected to broaden investor access, enhance shareholder choice, and support liquidity in Capitec’s shares.