Satrix Divi ETF lists on JSE

The new Satrix Divi Exchange Traded Fund (ETF) will make its debut at 09h00 on the JSE today after an IPO which raised R224,7 million from private investors.

177 389 818 Satrix Dividend Plus securities will be issued to successful applicants (to whom LAs were issued on Monday, 27 August 2007) at the commencement of trade on Thursday, 30 August 2007 at a price per security of R1,27 and at a conversion ratio of 0,79 securities for every one LA issued.

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." Brown advised that, "together with the investors in the Satrix Divi, there were now more than 45 000 individual investor accounts, both institutional and individual, that held investments in Satrix either through stockbroking accounts or through platforms such as the Satrix Investment Plan."

Russell Loubser, CEO of the JSE Limited stated that "the number of investors who supported this IPO and who are invested in other Satrix ETFs, listed on the JSE, is extremely encouraging. 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.

Satrix is also registered as a Collective Investment Scheme, accordingly, Satrix products offer investors the peace of mind of being regulated and legislated by both the Financial Services Board and the JSE.