/ 29 August 1997

Harvesting an African share issue

Madeleine Wackernagel

Hard on the heels of the successful Ikageng public share offer by Johnnic comes one from African Harvest, which is listing on the Johannesburg Stock Exchange on October 1.

Says African Harvest chair Mashudu Ramano: “This issue doesn’t compare in size, or price, but through our alliance with the National Empowerment Corporation [NE Corp], which has a shareholder base of 30 companies, we represent 300 000 people from urban and rural areas and we hope to make a significant contribution to spreading wealth.”

African Harvest, a joint venture between NE Corp and Coronation, a financial services group, will issue 10-million shares at R5 each to the public. In all, R200-million worth of shares will be offered, with R150- million taken up by NE Corp, Coronation Investment Trust and black investment groups.

The money raised – R1,2-billion – will be used to invest in the financial services and consumer goods sectors, says Ramano. “Without going into specifics, all I can say is we’re looking at high-growth sectors, and we have a few projects in our sights.

“We have the expertise and the background to create wealth for our shareholders and help to achieve job creation and income redistribution in our country.”

The public offer opens on Friday, and the size of the final share allocations will depend on demand, says Ramano. Shares will be offered in tranches of 100, but the maximum limits have not yet been set.

Ramano and his fellow directors will go on a countrywide roadshow next month to drum up support.