Johannesburg - Trellidor, which is set to list at the end of the month, will raise R332.6 million from its bourse debut which it will use to fund new products and acquisitions.
The company on Friday set its listing price at R6.25 after initially having said it would list with a share price of about R6 to R7 per share. Its market value will just top R650 million.
Trellidor will invite investors to take up 45.2 million shares currently held by SA Investment Opportunities, the Newgen Private Capital (South Africa) Investment Trust and other existing shareholders to raise R282.6 million.In addition, it will place 8 million new shares to raise R50 million.
In its statement to prospective shareholders, the company - which makes security doors - said it will use the cash it raises to fund the establishment and launch “of a new substantive in-house developed product in mid 2016” as well as to pursue synergistic acquisitions during the next 12 months.
Its rationale for listing is to raise capital so it can grow its business and grow its public profile, it says in its pre-listing statement.
Trellidor estimates it has 35 percent market share in its niche in the country’s main centres and 50 percent in outlying areas. It has 72 franchises in South Africa and distributors in 17 African countries, with an assembly plant in Ghana providing services to the West African region.
It has recently been expanding its distribution network to provide a platform to grow the business. It also wants to accelerate growth by increasing the market penetration of the new products in both South Africa and Africa and introduce more new products.
The company will debut on October 28.