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THE arrival of Taste Holdings on the JSEÆs small-cap board ù AltX ù will bring the total number of listed securities on AltX to 20. Although Taste is only raising R22,5m on AltX, it may have more significance than is immediately apparent. It may be the catalyst that AltX needs to finally propel it into the limelight.
Taste is the holding company of Scooters Pizza and Maxis, and both of these fast-food chains have been growing rapidly since Taste was founded in 2000. Its arrival on AltX will bring some real excitement to the exchange. And although its price- earnings ratio is not as yet known, it is likely to be close to that of the benchmark, Famous Brands.
It is a simpler operation than either Famous Brands or Spur, as it does not supply its franchisees from a central kitchen, like they do. And its product range ù at least at Scooters ù is narrower.
It is a young management team ù MD Carlo Gonzaga is only 32 ù and it is thus well-suited to the fledgling exchange, AltX.
While AltX has some really good companies ù African Dawn and Datapro spring to mind ù few of them have managed to instil excitement in the minds of investors. Perhaps Enaleni did before it got too big and migrated to the main board.
And perhaps thatÆs what the exchange needs ù a little dash of excitement to whip up private client investor interest. One can just imagine the day of listing next month; instead of the usual breakfast fare at the JSE, there will no doubt be plenty of pizza to accompany the bubbly and perhaps some mini-burgers as well.
And JSE development manager Noah Greenhill will also be in his element. He should get a reference in the dictionary for his persistence and for the dogged but good-natured way in which he has overseen the evolution of AltX. There can be few people around who could handle the criticism that has been thrown at him and still emerge smiling. He has limitless staying power and patience. And now it is being rewarded.
The market capitalisation of AltX is significantly higher than the combined market cap of its moribund predecessors, the DCM and VCM. If the ambient economy carries on growing, the number of listed securities on AltX could easily surpass the 100 mark during the next couple of years. And the trade is also getting pretty decent.
Perhaps TasteÆs listing will convince private investors of the need to get out there and buy.
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