Curro Holdings: R590m rights issue to fund expansion

Curro Holdings planned to raise R589.6 million in a rights issue to help expand its portfolio after revenue almost doubled last year, the listed operator of private schools said yesterday. It would sell shares at R20 each, a discount of about 27 percent to Monday’s closing price, at a ratio of one share for every 10 held on the May 30 offer date, Curro said. The shares gained 3.11 percent to R28.20 yesterday. Curro said the purpose of the sale was to finance expansion “due to the faster-than-anticipated growth” at its schools. It also planned to raise R1 billion this year by a bond or long-term bank funding. Curro has 31 campuses and plans to operate 80 schools in South Africa by 2020, according to its website. The rights issue will be underwritten by PSG Financial Services, which owns a 57 percent controlling share. – Bloomberg