Transaction Capital Limited‚ a non-deposit-taking financial services group‚ listed on the main board of the Johannesburg Stock Exchange (JSE) on Thursday. This follows a private placement of shares with South African and international institutional investors in a bookbuilding process.
Demand from a broad base of high quality investors resulted in the offer being oversubscribed at R8.00 per share. The full fifty million shares available from the primary placing were sold and the minimum secondary placement of 25 million shares was increased to 39 million shares.
The company debuted on the JSE at R8.48 per share – 48 cents higher than its offer price.
Commenting on the listing‚ Mark Lamberti‚ CEO of Transaction Capital‚ said: “We are pleased with the conviction shown by new investors in Transaction Capital. Markets worldwide are currently fragile and recent IPO activity has been characterised by cancellations‚ postponements and underperformance. With this in mind we were reluctant to price the offer aggressively.
Investor response suggests confidence in Transaction Capital as a route to high growth underserved sectors in specialised lending‚ credit services and payment services. This confidence will be vindicated by the performance of the group in the years ahead.”
According to Patrycja Kula‚ Business Development Manager at the JSE: “Transaction Capital placed 89 million shares valued at R712 million. The amount of institutional capital raised in the current economic climate testifies to the fact that the company‚ the JSE and the South African investment community provide a quality offering.”
Transaction Capital is listing in the “Financial Services Sector” under the abbreviated name “TRANSCAP” with symbol “TCP” and ISIN ZAE000167391. The company recently announced its interim results on 21 May 2012. - I-Net Bridge