Hanna Barry
1 minute read
26 Mar 2014
7:00 am

Finbond moves to main board

Hanna Barry

South African financial services institution and two-times winner of Moneyweb's stock pick competition, Finbond Group has moved from the AltX to the JSE's Main Board.

FILE PICTURE: The JSE in Sandton. Picture: Desiree Swart.

Finbond, which specialises in savings, credit and insurance solutions, listed on AltX in 2007 and the company’s market capitalisation has climbed to just more than R1.82bn, leading some market commentators to compare it with Capitec.

Finbond topped the Moneyweb stock pick competition for the second year in a row in 2013. In 2012, Finbond’s price increased 300%, from 11c to 44c. In 2013, Finbond returned 567% to its current level of R3 a share. “The transfer to the Main Board is another important milestone in the growth and development of Finbond …,” said CEO Dr Willie van Aardt.

The company conducts its business through Finbond Mutual Bank’s two divisions – an investment and savings division, and a micro-credit division. Management holds 44% of the issued shares, while Investec, Grindrod Bank and New-York based Riskowitz Capital Management are among its institutional shareholders.

Zeona Jacobs, director of issuer and investor relations at the JSE, said the JSE regarded each company moving from AltX to the Main Board as a demonstration of the success of AltX.

More than 92% of AltX executives indicated that they made acquisitions after their listing, demonstrating that “AltX is a catalyst for growth”, according to JSE research. There are 386 companies listed on the JSE with a total market capitalisation of almost R10.83 trillion.