Johannesburg- and London-listed financial services group Investec plans to raise R522,5-million via the issue of five million new preference shares at an issue price of R104,5-million, the company announced on Monday.
Investec said it has opted for the preference share offering, which opens on Monday and closes on Friday February 11, in order to create a more efficient capital structure, repay existing debt and “pursue current opportunities” in a more favourable growth environment.
The shares offer a dividend yield, based on a deemed value of R100, of 70% of the prime interest rate, and an effective dividend yield, based on the issue price of R104,50, of 67% of prime.
The minimum rand value of subscription per subscriber is R104,50.
The preference shares will be listed on the JSE Securities Exchange (JSE) on Wednesday February 16, under the abbreviated name “INVLTD PREF” in the specialist securities-preference shares sector of the JSE.
The listing is subject to the condition that Investec meets the requirements on the JSE in respect of the requisite spread of preference shareholders, being a minimum of 50 public shareholders excluding employees and their associates.
The preference shares are non-redeemable, non-cumulative and non-participating, with dividends payable semi-annually. They are also non-voting, unless during periods when a preference dividend — which has been declared — or any part of it remains in arrears and unpaid after six months from the due date.
Investec shares were unmoved on the news and unchanged from Friday’s close, last quoted at R171,30 on the JSE. — I-Net Bridge