Makalani Holdings, a black economic empowerment (BEE) finance company formed by Rand Merchant Bank (RMB) to mobilise capital for BEE and development investments, listed in the investment companies sector of the JSE Securities Exchange (JSE) on Wednesday.
The first trade was at R101 per share, valuing the company at R2,525-billion. At 11.10am, the share traded at about R100, with R2,457-million-worth of shares or 24 400 shares having traded in 16 trades.
Makalani’s listing has been welcomed by investors as it provides a conduit through which institutional and private investors can invest in Financial Sector Charter-compliant empowerment and development transactions and earn attractive returns as well as charter scorecard points.
Makalani’s focus will be on funding large-scale transactions in both companies and projects with an emphasis on mezzanine funding.
Makalani has raised R2,5-billion from a private placement and a public offer that was oversubscribed by several million rand. Institutional investors own roughly 90% of the company and private investors the remainder.
RMB has provided seed capital of R500-million in cash and assets. Anchor shareholders, including RMB Asset Management on behalf of clients, have invested a further R625-million.
Makalani Manco, 75%-owned by RMB and 25% by BEE partners Tamela, Thesele Group and WDBH, will manage Makalani with the support of RMB, thereby providing investors with access to the exceptional deal-making abilities of the RMB debt and equity professionals.
Speaking at a breakfast ceremony at the JSE to celebrate the listing, CEO Vusi Mahlangu commented: “Now, for the first time, investors have the opportunity to invest in a listed mezzanine company that offers attractive, commercial returns. We believe we can change the face and pace of empowerment financing in South Africa.”
Russell Loubser, JSE CEO, commented: “It is encouraging to see a listing of this nature taking place precisely because it provides the man in the street with the chance to share in the opportunities presented by empowerment.
“Taking up these opportunities stimulates economic growth and spreads wealth to a much larger South African community, which can only be good news for South Africa.” — I-Net Bridge