As the Vodacom’s Yebo Yethu BBBEE scheme nears the trading date, many readers are raising the how questions. Here is how the Yebo Yethu scheme is to be traded from the 3rd of February 2014.
Trading Launch Date
3 February 2014
The Trading Platform
The Yebo Yethu shares are set to be traded on an over-the-counter (OTC) platform ran by Equity Express. This platform, Equity Express, hosts several other BBBEE shares including the Nasper’s Welkom Yizani and Phuthuma Nathi schemes, African Bank’s Eyomhlaba and Imperial’s Ukhamba.
Opening Up for New Investors
The launch of the trading platform will mean that initial investors, about 100 000, in the Yebo Yethu BBBEE scheme can trade, sell or buy more, shares. More importantly the scheme will now open up for new investors who missed the initial offer.
Who Qualifies for the Scheme?
You need to be black to qualify for the scheme. Both existing investors and people who wish to enter the scheme must register with Equity Express to be able to trade the Yebo Yethu shares. Registration can be done via the internet or the Call Centre. The internet address is www.yeboyethu.co.za or yeboyethushares.co.za. The Call Centre number is 082 214 0001 (toll free on Vodacom) or 011 321 5563. There is also an email address: email@example.com
And a walk-in centre: 71 Corlett Drive, Birnam, Johannesburg (Near Melrose Arch).
How and Where Are The Shares Traded?
Ensure that your registration has gone through. You must have received confirmation from the scheme administrators and a username and a password. Then you can trade online or via the call centre. But wait there I more you need to know.
Willing Seller Willing Buyer
The trading platform will work on a willing seller willing buyer basis. A bidding process will be established, online and call centre, where both sellers and buyers can separately set a price. The system will look for a match. If your price offer to buy matches the price offer to sell the transaction will go through and affected number of shares will be transferred accordingly.
Existing shareholders are not forced to sell their shares. You can hold on to your shares if you so wish. You sell any number of shares you hold, a portion or the whole lot. There will be minimal trading costs charged to you. Vodacom has stated that “The trading cost on a buy or sell transaction is 1.5% of the value of the trade (excl. VAT), subject to a minimum transaction cost of R120.00 (excl. VAT). Shareholders who buy shares have to pay a further ‘Securities Transfer Tax’ (STT) of 0.25% of the value of the trade. The fees charged are for the management of the OTC.”
The registration process will create an account of sort in your name. You will need to deposit money in this account which you will use to buy shares. There is one account number for the purpose of depositing money for trading. The money will then be allocated accordingly to participants accounts. Ensure you deposit the money onto the right account and watch out for swindlers. Get the correct banking details from the scheme administrators via the call centre or the online platform.
At What Price Must I Trade
The market, the bidding process, will set the price. You should seek financial advice before trading. An indicative price is likely to come out of analyst assessment of the Yebo Yethu scheme. Normally these reports come way before the launch of the trading date. In the case of Yebo Yethu we are yet to encounter any analyst assessment.
This is our first installment in a series designed to explain how the Yebo Yethu trading platform will work. Watch out for swindlers. Ensure that you are dealing with the correct person or platform.