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Get in on the ground floor

05 June 2005 Angelo Coppola

OTC trading starts on Channel Life privately held shares…

On 1 June Channel Lifeprivately listed a portion of the company’s ordinary shares, as a forerunner to a public listing on the JSE Securities Exchange in 2007.

Channel Life CEO René Otto says that there is bound to be a high level of interest as smart individuals scramble to get in on the ground level to take a stake in the country’s most ‘Africanised’ life insurer.

In order to make the stake accessible to all, Otto says that there will be a cap on the number of shares that any one individual or institution can hold. “We want everyone to have the opportunity to buy a stake in our business,” says Otto.

The private listing will also provide a “soft landing” for their (Channel Life) eventual public listing, because many of the rules and regulations of a formal listing will be applied. “It should also give us a fair idea of the open market value of the company, as a natural market of willing buyers and sellers will be created.”

The private listing and trading in the over the counter shares will be managed by PSG-online, the country’s largest non-institutional stock broker. Shares can also be bought through the offices of PSG Konsult.

There are charges, consisting of the customary regulatory charge of the value of the trade, and a brokers’ fee payable to PSG Konsult/Online.

Quick Polls

QUESTION

The second draft amendments to Regulation 28 will allow retirement funds to allocate up to 45% of their assets to SA infrastructure, with a further 10% for rest of Africa; but the equity & offshore caps remain unchanged. What are your thoughts on the proposal?

ANSWER

Infrastructure? You mean cash returns with higher risk!?!
Infrastructure cap is way too high
Offshore limit still needs to be raised
Who cares… Reg 28 does not apply to discretionary savings
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