Alex Forbes listing plans include R330m new issue

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Alexander Forbes had set the offer price for its planned share listing at up to R8.05 a share, it said yesterday, which would value the pension manager at as much as R10.4 billion.

Alexander Forbes, which was taken private by a group of investors including buyout firm Actis in 2007, also said it planned to raise R330m in fresh capital when it listed on July 24.

It said in a regulatory filing that it had priced the planned offer, which was not open to the public, at between R6.90 and R8.05 a share.

Its shareholders would sell nearly 389 million shares, while it would issue just over 44 million new shares to help bolster its capital position.

The total sale represented about a third of the company, Alexander Forbes said.

The offer price valued the group at around R10.4bn, based on the top end of the range, Reuters calculations showed.

The private pension manager has already agreed to sell an additional 34 percent stake to the world’s top insurance broker, Marsh & McLennan.

Founded more than 75 years ago, Alexander Forbes is one of South Africa’s biggest private pension fund managers.

After the 2007 buyout, some shares remained listed on the JSE through a special purpose entity called Alexander Forbes Preference Share Investments.

In line with the listing, the 28.4 percent stake housed in the special purpose vehicle will be spun off to holders, which include fund managers Allan Gray and Stanlib. Each share in the vehicle is worth an effective 1.095 ordinary shares in Alexander Forbes.

Shares in the preference share vehicle slid 6.78 percent to close at R8.25 yesterday.

Deutsche Bank, Morgan Stanley and Rand Merchant Bank are arranging the listing.

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