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How Ninety One will look after flotation

IPONinety One, the UK fund management firm demerging from South Africa’s Investec bank, will issue shares priced between £1.90 and £2.35 when it IPOs later this month and certain staff will be incentivised with a collective stake of up to 20% of the issuance.

The share issue, which is planned for March 16, will go ahead despite market conditions, said Hendrik du Toit, founder and CEO of the firm formerly called Investec Asset Management.

Ninety One said the 20% holding by eligible staff would be executed through an employee ownership vehicle called Forty Two Point Two and was in line with the firm’s practice of having a high level of employee ownership.

Investec Group will keep a 15% holding and 55% of the shares will be issued as ordinary shares to the public. About 10% will be held by existing or new institutions, broadening Ninety One’s access to capital.

Du Toit said: “In spite of the current backdrop of market volatility and uncertainty, we remain committed to the execution of this transaction, because of its long-term benefits. We are encouraged by significant investor interest.”

Two entities will list, one in London and one in South Africa. Ninety One plc intends to list on the Main Market of the London Stock Exchange, while Ninety One Limited intends to list on the Main Board of the Johannesburg Stock Exchange.

The price range of between 190 pence (€2.20) to 235 pence implies a market capitalisation of between £1,753 million and £2,168 million.

In terms of proceeds from the issuance, Ninety One plc is expected to raise about £98.2 million to £121.9 million, while Ninety One Limited is expected to get between £83.7 million to £104.3 million.

Founded in South Africa in 1991, the firm has £121 billion in assets under management, as at 30 September 2019.

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