The new Satrix RAFI 40 Exchange Traded Funds will make its debut on the JSE on Thursday 16 October after an IPO which raised R120.1-million from private investors, Satrix said in a statement on Wednesday.

Some 26.877 million Satrix RAFI 40 securities will be issued to all applicants who tendered for securities in the IPO.

The new Satrix RAFI 40 securities will be issued at a price of 4.34 rand per security and can be traded on the JSE from the market opening on 16 October.

The new Satrix securities will trade on the Exchange Traded Funds sector of the JSE under the abbreviated name SATRIXRAF, share code STXRAF and ISIN code ZAE00126033.

The Satrix RAFI 40 tracks the FTSE/JSE RAFI 40 Total Return index (J260T) and is the first listed product on the JSE that tracks a total return index.

Mike Brown, general manager of Satrix, says that "over 2000 individual investors applied for Satrix RAFI 40 securities during the Initial Public Offer process which opened on 8 September 2008 and closed on 6 October 2008."

"We have encountered considerable interest in this new product in presentations and roadshows that were conducted around the country over the past month. Despite the difficult and very uncertain market conditions on the JSE and world markets the subscription to the IPO was very encouraging. This bodes well for the long-term success of this new member of the Satrix family of ETFs," Brown added.

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