Ninety One Group may raise £182m in its IPO
“In spite of the backdrop of market volatility and uncertainty, we remain committed to the execution of this transaction, because of its long-term benefits,” chief executive Hendrik du Toit said.
Global markets have been volatile and recording large daily declines in the past few weeks as investors became increasingly spooked by the spread of the coronavirus, and the potentially harmful impact on global growth.
The group said that it would forge ahead with its planned primary listing on the London Stock Exchange and secondary listing on the JSE on March 16.
Du Toit, who is also the founder of the group that was spun off In- vestec Asset Management last year, said Ninety One was encouraged by “significant investor interest”, and they were confident of the capital-light business model of organically developed, specialist active investment.
The prospectus for a global offer was published yesterday.
The global offer would comprise up to about 10percent of the combined total Ninety One shares to be sold by the Investec Group, to new or existing institutional and certain other investors. The global offer price range had been set at 190pence to 235p per Ninety One share.
The range implied a market capitalisation on listing of £1.75 to £2.17bn.
Ninety One intends to have a free float of 60percent to 65percent of its issued share capital. Some 55percent of the combined total issued share capital in Ninety One plc and in Ninety One Limited would be held by Investec plc and Investec Limited.
Ninety One manages more than £118.9bn for institutional and adviser clients from all over the world.
The group said that 15percent of its shares would be retained by Investec Group, while 20percent would be held by Forty Two Point Two for the employee share scheme.
Some 10percent of the shares would be held by new or existing institutional and other investors.
Ninety One Group, a founder-led independent global asset manager with £121bn in assets under management, serves clients in Africa, UK, Asia Pacific, the Americas and Europe.
For the six months to September 30, 2019, it reported net inflows of £3.2bn and operating profit before exceptional items of £97.3m.
Du Toit said that Ninety One was supported by “an attractive financial profile, a carefully-developed culture, employee ownership commitment and a successful track record”.