EOH Holdings has launched its American Depositary Receipt (ADR) programme in the US through a sponsored programme with BNY Mellon.
The South African based ICT services group is listed on the main board of the Johannesburg Stock Exchange in the Computer Services sub-sector with a market capitalisation of over R10,4-billion ($1-billion). It is the largest ICT service provider in Africa and the largest implementer of enterprise applications.
Listed in 1998, the company is known for consistently delivering strong financial results reflected in its compounded annual growth rate of 45% since its listing.
“The launch of our ADR programme will enable international investors interested in companies in emerging markets to more easily invest in EOH,” says Asher Bohbot, CEO.
“We will use our DR programme to introduce EOH to international investors interested in investing in companies in emerging markets, particularly in South Africa. EOH offers good growth prospects as well as annual dividends.
“We operate predominantly in South Africa but also have operations in 22 other African countries. We are consolidating and expanding our African footprint and our service offerings to existing clients in the region. We will continue to grow aggressively, both organically and through acquisitions.”
Each EOH DR represents one ordinary share and trades on the OTC market in the US under the symbol ‘EOHYY’. EOH ordinary shares trade on the Johannesburg Stock Exchange (JSE) under the symbol “EOH”.
EOH was last month ranked by Financial Mail (in conjunction with Accenture) as the fourth best performing company on the JSE and has been amongst the top five best performing companies on the JSE for the last four years.
Lauren de Klerk, vice-president of BNY Mellon’s Depositary Receipts business, says: “We look forward to working with EOH to unlock the potential of the US investment community.”
BNY Mellon has launched over 60 American Depository Receipt Programs, making South African companies easily tradable for US investors. Shoprite, Growthpoint, Redefine, Blue Label Telecoms, Cashbuild, Sibanye Gold, Mix Telematics and Clover launched programs in 2013 and there are several in the pipeline for 2014.