Technology group 4Sight Holdings, has today announced that it has successfully transitioned from the JSE AltX to the Main Board of the Johannesburg Stock Exchange, marking a significant milestone in the company's growth. The listing is expected to increase visibility, attract investors, and open new growth opportunities. For more on this listing and the company’s prospects, CNBC Africa is joined by 4Sight Holdings, CEO Tertius Zitzke.
Technology group 4Sight Holdings, has today announced that it has successfully transitioned from the JSE AltX to the Main Board of the Johannesburg Stock Exchange, marking a significant milestone in the company's growth. The listing is expected to increase visibility, attract investors, and open new growth opportunities. For more on this listing and the company's prospects, I'm joined by 4Sight Holdings, CEO Tertius Zitzke.' Thank you for joining us this afternoon. Exciting times indeed for the organisation there. What specific factors led 4Sight to decide that now was the right time to transition from the AltX to the Main Board? I think the best reason for that is probably constant five years growth, double-digit growth in everything that we do. From turnover, profits, cash, I think if you read all the census from 2017 to 2019, I became CEO five years ago, and the old board resigned, and we appointed a new board, and the guys, they really delivered for us. We re-strategised, we stayed with our strategy, I had to form a new strategy with the company when the beginning of COVID struck us in 2020, April, and we just stuck with that. That was the transition that we needed for business where we are today, and the last year and a half where we invested a lot in artificial intelligence. I did a course at MIT on artificial intelligence for business and communities where I learned a lot, and that's the driver today, and that's what we do. We excel, it comes now at the right time, we've got the credentials, the past has passed us for five years now, and we are a solid business, doing good business with good governance in place, and we just enjoy every day at Foresight. How do you believe that this transition to the Main Board of the JSC will influence investor perceptions of Foresight, and then also, how do you expect the listing on the Main Board to impact the company's liquidity and access to capital? I think the first question on the JSC, with the changes on the listing requirements that they announced end of last year, I think it will really attract new investors, new listings there. We are a capitalist country in Africa as well, and this is the way they built America, as with people that believe in the dream and can deliver on that dream, and that's exactly what we do as well. We take business today on this path of digital transformation, and it's true, if a business doesn't transform today, it will die, a new guy will just come in way cheaper. We've considered delisting quite a few times, but every time, the reason for being on a stock exchange is that your customers, your stakeholders, that's your customers, your vendors, and your community, they trust you, because there's checks and balances in place. You get cowboys like the Steinhoff guys that don't comply with that, but that is why those rules are there, and our committees are so involved with us, from the chairman right down to every chairman of our committees, and you can see it in our annual integrated reports. We even released our annual integrated report last year, July, with co-pilot and artificial intelligence technology, so you can ask on our website any questions you want on the last four years financial statements, and that's where responsible AI comes in, so we're so geared for this future, and this is what we sell, and if you're a listed company, like we are now on the main board, well we will be on the 29th, nine o'clock, we have a big function on the JSC floor, where we will count off the time and blow that kudu horn, and it will just deliver for us. I've been at the JSC when that kudu horn is blown, it's quite an event, there's dancing, there's singing, it's quite an exciting time. If we look sort of more inwards, in terms of what the company is planning to do going forward, how do you see this move, this transition affecting the company's strategy in the next three to five years? So we've got four big clusters delivering revenue in four sites, you know, the one is operational technology, that's all the engineers, so we've got 130 engineers qualified from chemical to even a civil engineer, and they all work with data, okay, and then we've got the information technology cluster that really delivers the old ERP systems, accounting, payroll, financial reports, that solid financial stuff that you need in a business, and then we've got a division or a cluster that we started in 2020, business environment, and that is the breach between these two, so the conversions of operations and financials is very important for the future, so business environment basically looking at everything in the cloud, you know, all the cloud reporting, the hosting, we're a big partner with Microsoft Azure and all the Microsoft technologies, and we can see how that is excelling in business as well, and now our fourth cluster is really delivering all these other solutions to the market, so we've got over a thousand partners that we sell, Microsoft Sage, Aspen Tech, all this, all our vendor solutions that we customize and build our own intellectual property on, sell through that market into the rest of Africa and Mideast, so we've got good support from all these bigger vendors, and we are top listed with them as well, and with that we embrace the future, and the board, beginning of this financial year that we're in right now, ending in the end of February, they approved the investment of 20 million rands in artificial intelligence developments, and you can see on our Facebook and LinkedIn profiles of the company in December, now in January, every day there's a video on how we deliver artificial intelligence for business, because that is the question that business C-level guys ask is, where do I start, where do I start, and the first thing that you start with is your people, you need to take your people on this journey of artificial intelligence and secure their jobs for them, that they know if they innovate, they are there to stay, and they will make their, they will get more time available, because all of all of this new technology is coming to us. You've touched on artificial intelligence, obviously this being sort of a key part of what you do, and I noted in your announcement that came out today, there was mention of a 4AI strategy, that's not a term I've seen before, what is it, how is it going to drive both growth in both the AI and the digital transformation sectors? Okay, so 4 is for foresight, okay, so we say we take you from no sight, to hindsight, to foresight, okay, I asked a big company the other day, their board members, when is your board meeting? Okay, six hours, five hours, three hours, how much do you talk about the past and how much about the future? That board pack that you see two weeks in the new month is already two weeks old, so it's hindsight, you basically just see hindsight, but talk about the future, you know, how do you take your company to foresight, what do you, what is the things that will make you survive into the future? And that is, that is, that is our big focus, is this data, likes data strategies that we implement for businesses, but also to take the people on a adoption and change management process in order to get there. The announcement also mentioned the company increasing its global footprint along the lines of AI, how do you plan to further scale foresight operations internationally, especially in the context of emerging markets, if that's a focus? Okay, I think we, over the last five years, we saved a lot of cash up, so we've, we've got some money in the bank, I'm looking at a few acquisitions now that will super boost us, but we're also looking at other markets, well we do a lot of work remotely from here, so we're not really looking at maybe opening in Europe or New York or any place like that, but we work well with partners like Sage Partners and Microsoft and do the work here from South Africa, very competitive to the rest of the world, I mean, the Europeans charge per day, you know, hundreds of euros per day, you know, we still charge, you know, a few thousand rents per hour, you know, not even two thousand per hour, but that's our advantage in South Africa, and that is, that is the biggest asset that information technology or the IT sector in South Africa sits on, that we can service the world very well, and we're very well positioned, we're far away from all the, all the wars and everything that's bad in the world. Then finally, looking again at the, at the transition to the main board, what are your top priorities in terms of ensuring stakeholder value and managing the expectations of new investors? Okay, some investors say they want dividends, so we're definitely in a position to revisit our dividend policy now as well, and then, you know, we already had some calls, you know, for investors that may be, you know, you know, bigger investors that wants to maybe invest in chunks of shares, 80% of the shares still held by the original business owners in Foresight, so we need to change, we need to have a program to have more free-floating shares, and we're working on the strategy with that as well, and then also going in with that is that we rolling out a BEE, triple BEE plan for Foresight right now, that will basically flow down to all the affiliates in the group as well, because we are African-based, although we still, we do about 30-40% of our business from abroad, yeah.
Theme: Transition of 4Sight Holdings to JSE Main Board and its Implications
South African technology group 4Sight Holdings has made a significant stride in its growth trajectory by successfully transitioning from the JSE AltX to the Main Board of the Johannesburg Stock Exchange (JSE). The move, which is anticipated to enhance visibility, attract investors, and unlock new growth opportunities, marks a pivotal moment for the company. The CEO of 4Sight Holdings, Tertius Zitzke, shared insights into the factors that influenced this strategic decision, the impact on investor perceptions, and the future trajectory of the company. The decision to transition to the Main Board was underpinned by the firm's consistent five-year growth trajectory, with double-digit increases in turnover, profits, and cash flow. Since assuming the role of CEO five years ago and implementing a new board, 4Sight Holdings has remained steadfast in its strategic direction. The onset of the COVID-19 pandemic in 2020 prompted a strategic realignment towards a focus on artificial intelligence, a move that has proven pivotal in the current business landscape. Zitzke's personal investment in upskilling through an artificial intelligence course at MIT has been instrumental in driving the company's current success. The listing on the Main Board of the JSE is expected to reshape investor perceptions of 4Sight Holdings, drawing new interest and listings following regulatory changes in late 2021. Zitzke highlighted the importance of maintaining a stock exchange presence for building trust with stakeholders and showcasing governance practices. The company's commitment to transparency is evidenced by the release of annual integrated reports accessible through AI technology, reflecting a forward-looking approach to corporate reporting. Looking ahead, 4Sight Holdings aims to leverage its four revenue-generating clusters: operational technology, information technology, business environment, and solution offerings. The integration of AI technologies into these clusters is poised to drive growth and support digital transformation initiatives. The company's recent investment of 20 million rands in AI development underscores its dedication to innovation and competitive positioning. The 4AI strategy, coined by 4Sight Holdings, represents a transition from hindsight to foresight, emphasizing data-driven strategies and change management. This approach is set to propel the company into a future-focused era, aligning with evolving market demands for predictive analytics and innovative solutions. In terms of global expansion, 4Sight Holdings plans to capitalize on its cash reserves to explore acquisitions and scale operations internationally, particularly in emerging markets. The company's strategic advantage lies in its ability to deliver competitive IT services from South Africa, offering cost-effective solutions to a global clientele. As 4Sight Holdings prepares to list on the Main Board, priorities include revisiting dividend policies, enhancing liquidity through free-floating shares, and implementing a Broad-Based Black Economic Empowerment (BEE) plan. These measures are aimed at enriching stakeholder value and managing the expectations of new investors, ensuring sustainable growth and shareholder returns. The move to the JSE Main Board signals a new chapter for 4Sight Holdings, positioning the company for enhanced visibility, investor confidence, and continued innovation in the dynamic technology landscape.
"The move to the JSE Main Board signals a new chapter for 4Sight Holdings, positioning the company for enhanced visibility, investor confidence, and continued innovation in the dynamic technology landscape."
4Sight Holdings, JSE Main Board, Technology Group, Johannesburg Stock Exchange, AI Strategy, Investor Relations, Stakeholder Value, Corporate Strategy, Business Growth, Transparency, Financial Market, Financial Governance, Emerging Markets, International Expansion, CNBC Africa