RMB Advises Richemont On Secondary Inward Listing
RMB Advises Richemont On Secondary Inward Listing. RMB has acted as financial adviser and sponsor to Swiss based luxury goods company Richemont on the secondary inward listing of its A Shares and A Warrants on the JSE, replacing the former Depositary Receipt and A Warrant Receipt programmes. The secondary listing is in addition to their existing primary listing on the SIX Swiss Exchange.
As part of the R196bn transaction, Richemont will terminate its South African Depositary Receipt programme on the JSE. Depositary Receipts will be surrendered for A Shares in a ratio of 10 Depositary Receipts for one A Share and A Warrant Receipts will be surrendered for A Warrants also in a ratio of 10:1. The effective listing date was 24 April 2023.
Gareth Armstrong, Corporate Finance Executive, explained that Richemont’s rationale was that the new structure will provide greater flexibility for shareholders of the company, whether they invest in shares traded on the JSE or the SIX Swiss Exchange. Furthermore, it will facilitate easier trading of securities for all investors, improve market liquidity while also reducing administrative complexity for the company. Achieving this is only possible if investors in South Africa and Europe are able to trade across markets in an efficient way in the same instrument, which requires the cancellation of the company’s Depositary Receipt programme.
Richemont is known for global luxury brands such as Cartier, Montblanc, Dunhill and Piaget amongst many others. The company’s unique portfolio includes prestigious Maisons distinguished by their craftsmanship, creativity, and diversity, which cultivate expert curation and technological innovation to deliver exceptional products and services. As a family-spirited group, Richemont’s ambition is to nurture the unique heritage and values of its Maisons and businesses, while enabling them to grow and prosper in a responsible, sustainable manner over the long term.
