JOHANNESBURG - Diversified investment holding company Brainworks is set to make its primary listing on the JSE on October 13 and it is expecting to raise R316.52million by offering 275 23396 ordinary shares at an offer price of R11.50 a share.
Brainworks announced yesterday the launch and pricing of its institutional offering and the offer price is based on the board’s assessment of the value of the group. The institutional offering opened yesterday and will close on October 9. The company said it was not an offer to the general public but to qualifying investors.
The results of the offer will be released on the JSE around October 11 and applications in respect of the offer must be for a minimum of R1m. Brainworks chief executive Brett Childs said the group were confident that their strategy of listing would prove sound and that international investors would view Brainworks as the window through which they might access their excellent asset portfolio and participate in the opportunity that was Zimbabwe.
“With approximately 38percent of group revenue being generated from exports, through our hospitality division, a large property portfolio and our focus on micro finance, banking and insurance we are well placed to benefit in a changing economic environment,” Childs said.
Brainworks’ shares are expected to commence trading on the JSE in the “Equity Investment Instruments” sector on October 13. The Johannesburg-based advisory company Questco are acting as book runners for the offering. Brainworks’ headquarters are in Mauritius and its investment is based on the Zimbabwean hospitality, real estate, financial services and logistics sectors.
Its business strategy is to set up or selectively identify and acquire control of strategic equity stakes in attractive companies in Zimbabwe. Some of its investments include a 57.67percent investment in African Sun, a hospitality management company listed on the Zimbabwe Stock Exchange (ZSE) and a 66.81percent investment in Dawn Properties, a real-estate investment holding, development and property consulting services company listed on the ZSE.
In the results for the year to end December, Brainworks reported total revenue of $48.1m (R650m) and profit before income tax from continuing operations of $4.4m. Brainworks has consolidated gross assets of $157.5m and a total net asset value of $65.3m (excluding minority interest) as at December 31.