From Monday, Capitec Limited’s shares will be visible on two trading floors. The finance group, which recently shed the word “Bank” from its name, has secured approval to list on A2X Markets while keeping its primary home on the Johannesburg Stock Exchange (JSE). For investors, the change means an extra venue to buy or sell shares, which the company says should make trading smoother and improve liquidity.
The name change, which took effect on 26 August and was finalised at the end of the month, was presented as a better fit for a business that has moved beyond traditional banking into insurance and telecom services. The rebrand does not affect the group’s share capital, the total number of shares on issue stays the same, and the ticker symbol remains unchanged on the JSE.
A secondary listing works differently from a primary listing. A company that already trades on one exchange can add its shares to another platform without issuing new shares or altering ownership structures. In Capitec’s case, the A2X listing does not dilute existing shareholders; it simply offers an alternative market where the same shares can be bought and sold.
What a secondary listing means
According to Capitec Chief Financial Officer Grant Hardy, “Our secondary listing on A2X supports our commitment to creating value for shareholders by providing access to an additional trading venue and enhanced liquidity.” The statement reflects the company’s view that more trading options can narrow the gap between buying and selling prices, known as the spread, and make it easier for small investors to enter or exit positions.
A2X is a licensed South African stock exchange regulated by the Financial Sector Conduct Authority and the Prudential Authority of the South African Reserve Bank under the Financial Markets Act. Launched in 2017, the platform was created to increase competition in the country’s capital markets by offering modern technology and market infrastructure. Companies that already have a primary listing on the JSE can join A2X without changing their overall share capital, which is why several local banks have already taken the same step.
A2X CEO Kevin Brady welcomed the addition, noting that Capitec is “one of South Africa’s leading banking groups” and that its presence adds depth to the A2X market. The comment underscores a broader trend: as more large financial institutions seek secondary listings, A2X aims to become a viable alternative for a wider range of investors.
Why exchanges compete for the same listing
It is worth understanding why a stock exchange would want a company that already trades elsewhere. Exchanges earn revenue from trading fees, so more volume flowing through their order book is directly valuable to them, regardless of where the company’s primary listing sits. For A2X specifically, landing a household name like Capitec is also a credibility signal: it tells other JSE-listed companies, and the fund managers who trade their shares, that the newer exchange’s infrastructure can handle a heavily-traded stock without technical hiccups.
This matters for South Africa’s capital markets more broadly. For years, the JSE operated with little direct competition for equity trading, a position that can reduce the pressure to lower fees or invest in faster matching engines. A2X’s slow, steady accumulation of dual-listed companies, several major banks and retailers among them, has begun to change that dynamic, giving institutional traders a genuine choice of venue for the first time in decades.
For retail investors and small business owners who hold Capitec shares, the practical impact will be felt in the trading experience. A second venue can lead to tighter spreads, meaning the price you pay to buy a share and the price you receive when you sell may be closer together. It also reduces reliance on a single exchange, which can be useful if one market experiences technical glitches or heavy congestion.
However, the move does not guarantee higher share prices or reduced volatility. Market forces, company performance and broader economic conditions will continue to drive price movements. The secondary listing simply adds another mechanism for price discovery, the process by which buyers and sellers collectively determine what a share is actually worth at any given moment.
Investors should watch the early weeks of trading on A2X to see whether volumes shift and whether the expected liquidity boost materialises. If the new venue attracts significant activity, it could set a precedent for other South African companies looking to diversify their trading platforms, and for a market structure that has, until recently, offered very little competition at the exchange level.
