South African oil and chemicals group Sasol (SOL) on Wednesday transferred its US American Depository Receipt listing from the Nasdaq to the main board of the New York Stock Exchange (NYSE) on Wednesday in a move the group hopes will greatly expand its investor base.
Sasol is one of a number of South African companies that have opted to switch their ADR listings from the Nasdaq to the NYSE.
Last May, gold mining group Gold Fields (GFI) took its ADR listing to the NYSE and fellow gold producer Harmony (HAR) followed in November. South African telecommunications group Telkom (TKG) listed an ADR on the NYSE last month.
Sasol is hoping that a higher profile in New York will expand its investor base and draw more attention to the company, boosting its share price which has been under some pressure in recent times in line with global markets and because of volatility in the oil price and the rand.
Pieter Cox said: “This is a momentous day for Sasol. As a proud South African company and a global innovator we are particularly looking to facilitate an increase in international investors in Sasol and are committed to growing our US shareholder base.
The US is the world’s largest capital market and has one of the most sophisticated investment communities. Our listing on the NYSE will give us higher US market visibility and hopefully increasing appreciation for Sasol as an attractive, value-adding investment.”
“The NYSE is proud to welcome Sasol to our family of listed companies,” said NYSE chairman and CEO Dick Grasso. “Sasol joins a growing number of blue- chip South African companies that have made the NYSE their home away from home. Sasol takes its proper place among some of the world’s leading energy companies. We look forward to an outstanding partnership with Sasol and its shareholders.”
“Sasol is a great and successful South African company and I’m delighted to be a part of this very exciting day,” said professional golfing icon Ernie Els, who will be participating in Sasol’s NYSE listing ceremonies. “It gives me great pleasure to commemorate the event by buying the first 100 Sasol shares that trade on the New York Stock Exchange.”
Currently 25% of Sasol’s shares are held offshore – more than 60% of its foreign shareholders are in the US. – I-Net Bridge