JOHANNESBURG - Exxaro Resources said on Friday that its empowerment entity, Main Street 333 (MS333), had raised R2.54billion in its book build programme which had closed successfully. 

The book build placed 19million shares on offer, representing 6.1% of the ordinary issued share capital of Exxaro at R133 a share, the company said. 

The completion of the book build programme paves the way for MS333 to hold 78.6 million Exxaro shares of which 40.4m were expected to be reinvested in replacement black economic empowerment transaction, the company said on Thursday. 

In November Exxaro unveiled a new empowerment structure that would reduce empowerment shareholding from 50percent to own 30%.

MS333, and the Industrial Development Corporation, which manages more than R1trillion in assets on behalf of government employees agreed to invest in special purpose vehicles that would hold ordinary shares in Exxaro. Seleho Tsatsi, investment researcher at Anchor Capital, said the bookbuild would help mini­­mise any potential hangover of stock from MS333. 

“Exxaro’s two major investments, Sishen Iron Ore and Tronox, have performed very strongly this year and the coal business continues to be a relatively low-volatility operation,” Tsatsi said.