Zakhele Futhi shareholders confused by rand/cents share price

MTN Zakhele Futhi’s debut on the JSE on Monday last week has left investors fuming. Photo: Supplied
CAPE TOWN – MTN Zakhele Futhi (MTNZF) shareholders with no experience in trading have sold their shares at rock-bottom prices in the first two days of the listing of the black economic empowerment (BEE) vehicle, because they thought the prices were in rands and not cents.

Last Monday (November 25), the shares bought by previously disadvantaged shareholders three years earlier at R20 each ended the first day of listing at a lowly R4.80 after BEE shareholders traded some 64000 shares.

The following day, nearly 33000 shares were traded at a volume-weighted price of R9.39. The share recovered thereafter and was trading at R17 yesterday.

A BEE shareholder who preferred to remain anonymous, and who spoke on behalf of other BEE shareholders, told Business Report that they were duped into buying the shares.

“We were promised to be assisted by professional traders by MTN. However, that never happened. Many of us, including myself, are not experienced traders and, as a result of this, I sold 50 shares mistakenly for R238,” the shareholder said. “I would like to ask your professional opinion: how much could one sell each share for at the moment?”