Nicola Mawson
Artificial Intelligence (AI) software solutions provider, 4Sight, on Wednesday celebrated the moving of its listing from the JSE’s Alternative Exchange (AltX) to the Main Board under the general category, with its stock trading at 70 cents per share shortly after the market open.
The company, which kept its share code of 4SI, was founded in 2013 and was trading at 70c as of Tuesday’s close.
Speaking ahead of the blowing of the kudu horn, chairman Kamil Patel said “wow, we’ve done it”.
Patel, a Mauritian former professional tennis player, added that the move was a once in a lifetime milestone. “This moment is more like a reward in the way I see it. It reflects hard work.”
4Sight has the objective of continuing to deliver more than 20% shareholder growth each year, which underpins everything it does, as shareholders needed a competitive return, said Patel. However, he conceded that the company has experienced turbulent times. “The journey here has had a lot of ups but also downs.”
The company’s shares were suspended in October 2019 in “circumstances that culminated in the reconstitution of the entire board,” a note to shareholders stated at the time. The suspension, in line with the JSE’s standard operating procedure, followed the delayed publication of its interim results for the period to June 2019.
At the end of November that year, Foursight Holdings, which was the intermediary investment holding company of some of the South African subsidiaries, had been removed from business rescue. By December 27, 2019, the suspension in trade of its stock was lifted and the delayed results had been released.
Patel said that 4Sight, which was redomiciled from Mauritius to South Africa in May 2023, had – after the share suspension – implemented proper governance as well as a focus on audited results, strategy, budgeting and high performing people.
This, he said, has helped it define its objectives and given it a clear vision, helping investors “believe in us”.
4Sight will continue to grow, said Patel. He explained that the listing migration provided it with new opportunities, greater credibility for investors, and a chance to make an even bigger impact in the industry.
“This is just the beginning,” he said.
Patel explained that, over the past decade, the tools it has used to solve client’s problems have changed, especially with the advent of AI, “so we need to change”.
4Sight is the first AltX company to migrate to the Main Board’s general category, for which listings are less burdensome in terms of regulatory requirements, while still adhering to stringent corporate governance and financial reporting standards.
There were 22 companies in the general sector before 4Sight joined it.
Sam Mokorosi, the head of origination and deals at the bourse joked that: “The louder you blow that kudo horn and the louder you play the drums, the better your shares will perform.”
4Sight CEO Tertius Zitake said “this achievement not only showcases our company's resilience but also affirms our commitment to providing exceptional worth to our stakeholders”.
Zitake pointed out that the company was the first to make its annual report available through AI.
4Sight’s latest results, for the six months ended August last year, revenue gained 20.1% to R541.9 million, while operating profit grew 32.9 % to R 35.6 million. However, its gross profit margin fell to 40.7% in August 2024 compared to 40.9% in June 2023.
Headline earnings per share were at 5.185c compared to 3.828c in the same period a year before.
Wednesday’s listing increased the number of listed companies on the JSE to 279, with a market capitalisation exceeding R19.6 trillion.
BUSINESS REPORT