[Johannesburg, 15 June 2000] – South African IT and networking company Dimension Data has been given the green light by the Minister of Finance Trevor Manuel to proceed with a listing on the London FTSE index.
Yesterday’s announcement brings to a conclusion
DiData’s year-long
wait for government approval for the London listing and the
company revealed yesterday that it expects to raise about #1-billion
(R10,5-billion) from the listing.
DiData expect to rank 69th on the FTSE 100, making it the fifth
largest technology stock on the London Stock Exchange.
The company hopes to achieve a market capitalization of around
#5,5-billion subsequent to the listing.
The final decision was made yesterday by Finance Minister Trevor
Manuel in consultation with cabinet, but the Minister revealed that
the FTSE listing would be subject to a number of conditions.
These conditions are firstly that DiData’s South African branch
register would remain listed on the Johannesburg Stock Exchange,
and secondly, that share transactions would remain subject to
domestic tax laws.
DiData Chairman Jeremy Ord revealed that capital from the listing
would be used to fund acquisitions, buy out minorities and improve
employee incentives.
Ord indicated that it would take about 16 weeks to prepare for the
listing, which would place the listing date near the beginning of
October.
The company, with operations in 36 countries, has been making
steady inroads into the US in recent months, leading commentators
to suggest that a Nasdaq listing might have been a preferable
alternative to the UK listing.
Ord indicated earlier this year, however, that his company would
prefer to seek a high profile position on a smaller exchange than a
low key position on the Nasdaq.
