MONDAY, 10.30AM
The market value of New Africa Investments Limited (Nail) more than doubled to R3,4-billion on Monday, in its first share rights offer.
Chairman Ntatho Motlana said Nail’s capital raising made corporate history: “We don’t believe any company has more than doubled its market capitalisation with its first rights offer,” he said.
Nail issued R1,6-billion in new shares, of which R600-million was issued in an offer to Nafhold minority shareholders. The issue was oversubscribed by R250-million.
BUSINESS BRIEFS
PUBLIC SECTOR WAGES UP
The government has agreed to raise public sector wages by 8% across the board, in a move that analysts believe will be neutral for the economy. The deal means that the average minimum wage will be lifted 11,1%, backdated to July 1, according to public service and administration sources.
NAIL RAISES R1,6bn
NEW Africa Investments Limited (Nail) says that its previously announced rights issue has raised R1,6-billion in fresh capital. The group says that R1-billion in N-shares has been placed with private investors, and R600-million has been taken up by shareholders in Nafhold, Nail’s unlisted financial services arm.
FOREIGNERS SNAP UP SA STOCKS
FOREIGN investors were net buyers of R856,5-million of equities on the Johannesburg Stock Exchange last week. This comprised equity sales of R1,07-billion against purchases of R1,93-billion. In the same week last year, foreigners bought R436,2-million of South African stock. Foreigners have bought R19,25-billion in equities so far this calendar year, up 227% from R5,88-billion last year.
NANDO’S PERI-PERI PROFITS
NANDO’s, the fast-food chicken company, showed higher turnover, rising 15% to R120,6-million for the six months to August 31. Operating profit jumped 27% to R9,5-million from R7,5-million previously. Earnings a share came in at 31% higher at 2,65 cents. The company is expected to beat the 6,25 cents full-year earnings forecast in its pre-listing prospectus, because the second half-year is traditionally stronger.
MANUEL REQUESTS DEBT REDUCTION
FINANCE Minister Trevor Manuel has asked the International Monetary Fund and World Bank to write off a portion of Malawi’s and Zambia’s respective debt. Speaking at the annual general meetings of the bodies in Hong Kong, Manuel said the debt is inhibiting growth and development in the region. South Africa will directly benefit from reduced debt burdens in neighbouring countries, which would free up capital for poverty alleviation, development and growth-enhancing investment.