House builder Visual to list on AltX next month

Comment on this story

Roy Cokayne

Visual International Holdings, a property development firm that develops complete, self-contained suburbs for the middle-income market, is to list on AltX, the JSE’s junior exchange, next month.

The listing is scheduled for April 4 and will be preceded by a private placement through which Visual plans to raise R33 million. These funds will be used to fast track the next phase of its property development plans at its flagship Stellendale residential complex in Kuils River in Cape Town, over the next two years.

Visual is making 26 percent of its share capital available in the private placement, with 66 million shares available for issue at 50c a share subject to a minimum subscription of 10 000 shares, or R5 000. Based on this, Visual will have a market capitalisation of R126.5m. It has a net asset value of R70.7m.

The offer will close at noon on March 28.

Visual forecasts earnings a share growth of 19 percent a year for two years and plans to reinvest all profit for the first few years without paying dividends.

Visual chief executive Charles Robertson said its long-term strategy was to increase the percentage of retained properties in its developments over time from 15 percent currently to benefit from increased and escalating annuity income as well as capital growth.

Visual develops mixed-use suburbs and builds housing for the middle market, with homes and apartments priced from R400 000 to R700 000. Robertson said this was the fastest-growing income segment in South Africa and demand for homes outstripped supply.

“We have found the middle-income market is not well catered for with housing right now,” he said.


sign up
 
 

Comment Guidelines



  1. Please read our comment guidelines.
  2. Login and register, if you haven’ t already.
  3. Write your comment in the block below and click (Post As)
  4. Has a comment offended you? Hover your mouse over the comment and wait until a small triangle appears on the right-hand side. Click triangle () and select "Flag as inappropriate". Our moderators will take action if need be.