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How to Buy SAB Zenzele Kabili Shares In South Africa – With 0% Commission

SAB Zenzele is a major South African drinks and brewing company. The company is listed on the Johannesburg Stock Exchange and is one of the largest South African fast-moving consumer goods industries. In this guide, we’ll discuss what you need to know about the company and how to buy SAB Zenzele Kabili shares in South Africa in the easiest and most cost-effective way.

How to Buy SAB Zenzele Kabili Shares – Step by Step Guide 2021

If you want to buy SAB Zenzele shares in South Africa, this guide is just for you. Follow our quick step-by-step walkthrough based on popular stockbroker Capital.com.

  • Step 1: Open an account with Capital.com – Go to Capital.com’s website and open a trading account by clicking on the ‘Trade Now’ button and submitting your email address and password.
  • Step 2: Verify your Account – Upload proof of ID and proof of address to verify your identity.
  • Step 3: Deposit Funds – Deposit a minimum of 20 GBP/USD/EUR with one of Capital.com’s supported payment methods.
  • Step 4: Buy Sab Zenzele Shares – Search for Sab Zenzele shares in Capital.com’s trading platform and place a buying order.

Step 1: Choose a Stock Broker

The first thing you should do is to choose a broker. It is pertinent that you ensure that the broker you choose has access to the exchanges where SAB Zenzele Kabili shares are listed. This is why we have chosen Capital.com; its fee structure and features are also unique.

In this section, we will be reviewing Capital.com, the best commission-free stockbroker in South Africa.

1. Capital.com – Buy SAB Zenzele Kabili Shares With Leverage

capital.com logoCapital.com is our recommended broker for investors who want to buy SAB Zenzele shares. The broker is heavily regulated by the UK’s Financial Conduct Authority (FCA) and the Cyprus Securities and Exchange Commission (CySEC). Capital.com is a safe platform for South African traders.

Although Capital.com is relatively new in the scene, compared to others, having launched in 2016. However, this broker is already one of the best share trading platforms in the world. Capital.com offers CFD trading options that allow users to speculate on the price of an asset without owning it. When trading stock CFDs, the broker offers leverage of up to 1:20.

Capital.com assets

The platform also offers a 0% commission structure which means that users do not have to pay additional fees when placing a trade. With Capital.com, you get access to over 3600 shares from 18 stock exchanges in the world. It also offers access to 26 stock indices, 201 cryptocurrencies like Bitcoin and Ethereum, 31 commodities, and 138 FX currency pairs. One of the advantages of using Capital.com is the low minimum deposit amount, which is set at $20. This means you can get started trading these assets at a low cost. Capital.com is also beginner-friendly; the broker offers traders a wide selection of educational materials on their website. This includes articles, a glossary, and various courses to help them get up to speed in the markets. They also offer a demo account you can use before real trading. This provides a risk-free way of gaining exposure to the trading platform.

Pros:

  • Commission-free trading
  • Educational tools for beginners and professional traders
  • No deposit and withdrawal fees
  • Tight spreads
  • Huge range of assets – stocks, indices, cryptocurrencies, and so on
  • Minimum deposit requirement of only $20
  • Free demo account available

Cons:

  • Offers only CFDs
  • Not regulated by the Financial Sector Conduct Authority (FSCA)

75.26% of retail investor accounts lose money when trading CFDs with this provider.

Step 2: Research SAB Zenzele Kabili Shares

Investments are very risky, and you must be careful before you commit. In essence, you need to conduct thorough research on the company you want to invest. This way, you can learn about several things, including its business model and structure, historical financial track record, and best-performing products and services. Given the importance of this phase, we have condensed all the details you need to know about SAB Zenzele Kabili and its share price performance since listing on the Johannesburg Stock Exchange (JSE).

What is SAB Zenzele Kabili?

SAB is short for South African Breweries Zenzele Kabili. The company’s name replaces the previous black economic empowerment scheme Zenzele Kabili, which grossed over R9.7 billion in its ten-year history, making it the largest consumer goods B-BBEE scheme in the consumer goods sector. According to the South African Breweries, SAB Zenzele Kabili is expected to further accomplish the previous initiative. The scheme’s vision is to foster innovation and encourage socio-economic transformation in South Africa via creating a platform for wealth creation. To this end, SAB Zenzele Kabili, like its predecessor, is targeted towards black South Africans. The brand was created to enable a more inclusive wealth distribution within the economy.

With a current valuation of R95 billion, SAB Zenzele Kabili boasts of a total gross turnover of R367 million and traded at R180 a few days after its public listing on the Johannesburg Stock Exchange. This saw it rack up over R7.2 billion in a short period. SAB Zenzele Kabili also owns R5.4 billion worth of shares in AB InBev, the world’s largest beer maker by volume.AB InBev is an international partner of the SAB Zenzele Kabili initiative. It is one of the largest beverage and beer makers in the world with over 500 popular brands like Budweiser, Corona, and several others.

SAB Zenzele Kabili webpage

Since listing on JSE on May 28, SAB Zenzele Kabili shares is the 330th most traded stock on the high-end exchange market with a total volume above 624,552 shares in 4,561 deals valued at R80.4 million. The past three months have been a whirlwind of volatility for SAB Zenzele Kabili shares with the ticker symbol SZK. Launching at a low R40 per share, SZK stock shot up to R180 in a few days before market pressures saw it lose some of its gains. This parabolic rise is attributed to the remarkable success of the previous, which indicates that investors are confident of the replacement initiative to yield greater returns on investments (ROIs). SAB Zenzele Kabili is headed by Moses (Moss) Ngoasheng, who serves as the Chairman of the B-BBEE scheme.

SAB Zenzele Kabili Share Price

Despite being fresh on the exchange, the SZK stock has been quite busy. As we mentioned earlier, this rebranded empowerment scheme started trading on May 28, 2021, which means it is still a new entrant into the highly active exchange market. At its IPO launch on the said date, SAB Zenzele Kabila’s share went for R40 a pop, allowing shareholders to reinvest a minimum of 63.5% or all of their remaining proceeds into the new scheme. This qualified shareholders to receive 25% in dividends annually and will be able to trade their shares immediately.

SAB Zenzele Kabili price chart

75.26% of retail investor accounts lose money when trading CFDs with this provider.

SAB Zenzele Kabili became an investor’s favorite after it surged to R177 on June 2, increasing more than 500% in a matter of days. However, this was not its record as it climbed further, plateauing at R180 on June 3. It retained this high mark price for upwards of a week and only changed course on June 14 when it dropped by 0.01% to R179.99 before moving up again to its previous high.

However, this price action created a strong resistance line, and SZK could not break above, and it slumped sharply to R127.60 on June 17 before rallying to R175 a day after. But this was not a signal that it would retest its previous breakout trajectory and only plummeted further, dipping to R100 in early July and trading above the R80 mark.

August has not been any different, with SAB Zenzele Kabili making a feeble attempt at making a recovery at topping out at R100. At the moment of writing, it closed the trading session at R95, down 12.09% in the last three months.

As per the price-to-earnings ratio (P/E), SAB Zenzele Kabili is missing that, and this is largely due to its relative newness to the stock market. Its market cap is set at R3.92 billion based on its previous week’s close, and it has 40.6 million outstanding shares.

SAB Zenzele Kabili Shares Dividends

Much like several share investments, SAB Zenzele Kabili pays shareholders dividends. However, it has not made any dividend payment yet to investors, but the empowerment scheme intends to do so in the future.
Following its listing on the JSE, SAB Zenzele Kabili noted that shareholders with a substantial minimum investment of 63.5% would stand to gain 25% in annual dividends. This can be a great deal if it replicates the success of its predecessor.

Are SAB Zenzele Kabili Shares A Good Buy?

SAB Zenzele Kabili is not the only empowerment scheme in the South African market. Others like MTN Zakhele Futhi and Astoria Investments Ltd have also posted massive returns. However, SAB Zenzele Kabili is one of the best stocks to buy in South Africa given its larger market cap, which points to more liquidity, and its established brand name. Aside from this, SAB Zenzele is the single largest company by market cap in a list featuring CoreShares S&P Global Property ETF, Sabvest Capital Limited, and several others. Still not convinced as to why you should buy SAB Zenzele Kabili shares, we’ve highlighted some key reasons below:

The Popularity of the Empowerment Scheme

As previously stated, SAB Zenzele Kabili is the successor of the highly popular B-BBEE scheme Zenzele Kabili which floated between 2011 and May 2021. The empowerment initiative, which seeks to empower the black South African, became so successful in its ten-year tenure that it grossed just north of R10 billion. The rebranded scheme by SAB and AB InBev is meant to build on this success by taking this innovation further, thereby transforming the socio-economic status of the average black South African.

Although just three months into its first stock full-cycle trade, SAB Zenzele Kabili’s share price has shot up by more than 2,000% from its opening share price of R40 to R180 in early June. In addition, it saw its market cap hit R7.2 billion before the market correction. Despite this, it boasts a larger market valuation than close rivals like MTN Zakhele Futhi with R2.42 billion and Sabvest Capital Limited with R2.13 billion. This shows that investors are highly confident of the initiative surpassing its predecessor’s success and makes this a profitable and safe investment for the long term.

Close Partnership With AB InBev

To attain its stated goal, the South African Breweries (SAB) partnered with international beer and malt beverage brand AB InBev to make the new scheme a success. This saw SAB Zenzele Kabili snap up R5.4 billion worth of AB InBev shares coupled with a preferential share debt of R2.9 billion.

AB InBev is a global manufacturer, marketer, and distributor of popular beer brands like Budweiser, Corona, and several malt beverage drinks. Its close association with the project signals investors to buy the SZK stock, given its remarkable reputation as an international brand.

The Computershare’s Effect

The SAB Zenzele Kabili share is obtainable on popular Australian financial services provider Computershare’s website. Computershare is a stock transfer company that provides corporate trust, stock transfer, and employee share plan services. Computershare serves as the scheme’s issuer agent and onboards new shareholders interested in SAB Zenzele Kabili shares.

Step 3: Open an Account and Buy Shares

Given all the information you have about SAB Zenzele Kabili, you may be interested in adding it to your investment portfolio. To get started, you will need to open an account with a broker that provides support for South African companies and shares. From our discovery, Capital.com is a top-regulated online broker that offers 0% commission trades and is the best place to buy shares in South Africa. This section will show you how to open an account on Capital.com and buy SAB Zenzele Kabili shares.

Step 1: Open a Trading Account at Capital.com

To open an account, visit the homepage of Capital.com and click on the ‘Trade Now‘ button to begin. You will need to supply a valid email address and choose a strong, unique password on the signup form. You can fast-track the registration process by just connecting your Google, Apple, or Facebook account.

Capital.com sign up

75.26% of retail investor accounts lose money when trading CFDs with this provider.

Step 2: Upload ID

Capital.com requires all new users to complete a mandatory know-your-customer (KYC) process as part of its regulatory duties. This means you will be required to upload a copy of your passport or driver’s license, national ID, and proof of address which can be a recent copy of your bank statement or utility bill.

Step 3: Make a Deposit

Capital.com has a low minimum deposit entry bar, and you can get started with just $20 (about 285 ZAC). Deposits can be made through various options, including bank wire transfer, debit cards, credit cards, Sofort, iDeal, Giropay, Multibanko, QIWI, Webmoney, ApplePay, Trustly, AstropayTEF, and several others.

Capital.com deposit

Step 4: Buy SAB Zenzele Kabili Shares

Now you can buy SAB Zenzele Kabili shares. To do this, type ‘SZK’ into the search bar on the top left corner of your page and input the number of shares you want to buy. Once you are satisfied with your order form, you can click on ‘Buy’ to gain exposure to SAB Zenzele Kabili shares.

SAB Zenzele Kabili Shares Buy or Sell?

SAB Zenzele Kabili may be new in the stock market, but its market activity has been quite impressive. Given the project’s intent to catalyze an economic resurgence, SAB Zenzele Kabili shares may be the next hot stocks in the South African financial space. In the meantime, its bargain price of R95 could be a good buying opportunity for you if you plan to buy SAB Zenzele Kabili shares.

So, if you’re looking to buy SAB Zenzele Kabili shares in South Africa, we’d recommend using Capital.com. It offers you a user-friendly trading platform and zero commission policy when buying and selling shares.

Capital.com – Buy SAB Zenzele Kabili Shares With Zero Commission

Capital.com Logo

75.26% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider.

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About Jimmy Aki PRO INVESTOR

Based in the UK, Jimmy is an economic researcher with outstanding hands-on and heads-on experience in Macroeconomic finance analysis, forecasting and planning. He has honed his skills having worked cross-continental as a finance analyst, which gives him inter-cultural experience. He currently has a strong passion for regulation and macroeconomic trends as it allows him peek under the global bonnet to see how the world works.

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