ALTVEST Capital, a company that will allow investment by the public in private equity assets from as low as R100, will initIally list as a cash shell on the Cape Town Stock Exchange (CTSE) on May 5 and plans to acquire investments within four to six weeks thereafter.
Its planned R50 million listing of 10 million shares was on Tuesday approved by the CTSE, a statement said.
The company’s management said they had started the selection process for potential investment opportunities, and the pipeline included privately-owned companies in the fintech, offshore medical property investment, sports team, wine estate and in the agriculture sectors.
“AltVest aims to list up to four opportunities in 2022 and, thereafter, ramp up to a listing opportunity per month. The vision is to create a broad-based SME Index in future that is made available and supported by the general public,” the company said on its website.
The biggest shareholder when it lists will be WGW Capital, with a 34 percent stake and which is owned by AltVest founder and non-executive director Warren Wheatley, who is also Lebashe Investment Holdings’s chief investment officer. Lebashe is the major shareholder of the media group Arena Holdings.
“AltVest, as a listed entity, will seek to utilise its media partners to attract both issuers and investors onto its platform. The platform will leverage its media assets to raise funds from investors for acquisitions across assets that include: crypto/blockchain, property, agriculture, fintech and luxury assets,” the company said in its business plan.
Post listing, “AltVest will acquire significant stakes in entities by listing preferred ordinary shares available for subscription by investors. The preferred ordinary shares will represent the economic value of the underlying private entity, and these entities will be required to present regular management accounts and audited annual financial statements,” the company said.
The company had kicked off its media campaign on March 8 with a podcast on the Wine Industry, which had received views in excess of 12 000 “listens” to date, its website said.
The podcast would be followed with weekly interviews about alternative investments, while a media campaign with media partners Banker X, Biznews and Nielsen Network would be launched to attract investee companies.
Candidate investment companies would be required to also compete for capital from the public by being showcased on a television show similar to Sharks Tank/Dragon’s Den.
AltVest intended to make fractionalised ownership available of unlisted assets to retail and institutional investors, allowing secondary market trading of special purpose vehicles.
It aimed to hold a portfolio of diversified assets by acquiring stakes in private companies of 15 percent to 49 percent. A 3-5 year strategy would be implemented to unlock value and maximise returns for all stakeholders of the investee companies, the company said.