Modern CFOs are rethinking capital market strategy beyond the primary listing. Secondary listings can unlock greater liquidity, lower transaction costs and improve market resilience, offering meaningful value for both companies and shareholders.
The role of the modern chief financial officer has evolved. Today’s CFO is not only the steward of the balance sheet but also a driver of strategy and shareholder value. In that role, finding ways to improve liquidity, broaden the investor base, and reduce frictional costs without increasing operating expense is a core responsibility.
One underused tool in that strategy is your company’s stock exchange listing model.
For years, companies treated public listing as a simple yes-or-no decision. But competition in South Africa’s capital markets has changed that. Companies now have a broader set of listing options, each with distinct strategic benefits.
Here is the landscape in brief.
The foundation: primary listings
A primary listing is a company’s main home in the public markets. It sets the baseline for regulatory compliance, governance, and reporting obligations.
Securing a primary listing requires extensive due diligence, approvals, and fees. In South Africa, the JSE has traditionally been the main venue for large-cap stocks. But a primary listing does not have to be the only place a company’s shares trade.
The cross-border play: inward listings
An inward listing happens when a foreign company, such as Prosus or AB InBev, lists its shares on a South African exchange. The aim is typically to access South Africa’s institutional capital pool and make it easier for local investors to buy the stock in rand without using offshore allowances.
It can also support local acquisitions, mergers, or a stronger regional profile.
The strategic expansion: secondary listings
A secondary listing places a company’s shares on another exchange in addition to its primary venue. Historically, South African companies such as Gold Fields, Harmony and Impala used offshore secondary listings in markets like London or New York to reach foreign investors. Those listings can be valuable, but they usually require extra legal work, dual compliance, and higher ongoing costs.
The equation changes when the secondary listing is in the same jurisdiction.
The ultimate win-win: same-jurisdiction secondary listings
Evidence from Europe illustrates the point. In Europe, where these venues are referred to as MTFs, they have positively redefined the landscape over the past 20 years. Primary exchanges in Europe, which historically dominated, now account for less than half of all trade in the shares that they have listed on their market. This is true across the board, with BMLL data for 2025 showing the likes of the LSE, Deutsche Borse, Amsterdam, Brussels and Paris Stock Exchanges, all accounting for between 38%-45% of total trade. Institutional investors have increasingly migrated their orders to transact on alternative venues due to their lower fees, innovative and low signalling order types to access liquidity, and importantly, because it has supported better execution outcomes.
That is where A2X Markets fits into the South African market. If your company already has a primary or inward listing in South Africa, it can also obtain a secondary listing on A2X.
Because A2X operates in the same regulatory environment under the FSCA, it mirrors the framework of the primary exchange. It does not impose additional reporting or compliance work on issuer teams.
Most importantly, A2X has eliminated the financial barrier to entry: a secondary listing on A2X is entirely free. There are no initial listing fees and zero ongoing annual listing fees.
Why does that matter? Because the benefits can be immediate and tangible for shareholders:
- Lower execution costs: A2X’s technology allows brokers to trade at materially lower transaction fees, often 30% to 50% less. Those savings can flow through to investors and make the stock more attractive.
- Better liquidity and pricing: A second trading venue encourages competition for passive liquidity which in turn helps narrow Bid/Offer spreads, resulting in better execution outcomes for buyers and sellers.
- Risk mitigation: A second venue reduces reliance on a single market infrastructure and helps maintain trading continuity if the primary market suffers a technical outage.
- A stronger market signal: Choosing a secondary listing shows that management is focused on efficiency and committed to shareholder value.
In a market that increasingly rewards choice and efficiency, same-jurisdiction secondary listings deserve serious consideration. If they can improve liquidity, lower trading costs, and strengthen market resilience without adding cost or complexity, they are more than a tactical option—they are a strategic decision for any CFO serious about capital efficiency.
