Satrix Divi lists on Main Board

August 30, 2007 at 12:00 AM EDT

30 August 2007: The Satrix Divi Exchange Traded Fund (ETF) made its debut on the JSE Main Board today after an IPO which raised R224,7 million from private investors. 

Mike Brown, General Manager of Satrix says that “over 5 000 individual investors applied for Satrix Divi securities during the Initial Public Offer (IPO) process, which closed on Friday 24th August.  Subscriptions were received for amounts ranging from R1000 to R10 million.”

Brown comments that, “This appears to have been one of the most widely supported IPOs in recent years, in terms of the number of investors who participated in the IPO.  Thousands of investors showed their support for a simple to understand, easily tradable and cost effective investment, which should provide both good capital performance and a higher than usual dividend yield.” 

Russell Loubser, CEO of the JSE Limited stated that “Many of the Satrix shareholders are first time investors on the JSE and we are delighted that more and more people are gaining exposure to the stockmarket through Satrix and in this way are learning to understand and appreciate the workings of the market.” 

The Satrix Divi tracks the FTSE/JSE Dividend Plus Index, which consists of the top 30 companies, ranked by forecasted dividend yields, listed on the Top 40 and mid cap indices of the JSE.  By selecting the highest normal dividend paying companies on the market, the FTSE/JSE ensures that investors enjoy a higher than average dividend yield, plus the promise of capital outperformance if such Dividend Plus constituent shares are re-rated relative to the rest of the market, because of their high yields and good cashflows. 

Satrix Exchange Traded Funds are listed on the JSE under the Exchange Traded Funds sector of the Main Board.  They offer investors the convenience of purchasing an entire basket of index tracking shares with the convenience and low cost of a single trade.  Satrix securities can be purchased or sold through any JSE registered stockbroker.  Alternatively, a substantial number of investors participate through the Satrix Investment Plan, where investments can be made from as little as R1000 lump sum or in debit orders from R300 per month.

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