Ninety One

Written by Citywire

March, 2020

In association with

Ninety One not panicked as it reveals IPO price

Ninety One remains committed to its scheduled float later this month amid the market volatility, revealing the price range for its initial public offer.

The fund firm, which is being spun out of Investec, has set the range of 190p to 235p, given the firm a market capitalisation of £1.7 to £2.2bn.

The global offer comprises 10% of Investec stake in the business and is being offered to new or existing institutional investors and ‘certain other investors’.

The offer is expected to raise between £181.9m to £226.1m ahead of the firm’s scheduled listing on 16 March.

The update come as fears of a global pandemic sent stockmarkets across the world plunging last week.

Ninety One chief executive Hendrik 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. We are confident in our capital-light business model of organically developed, specialist, active investment offerings.’

Investec outlined plans to list its funds business Ninety One on the London Stock Exchange earlier this year.

The plan came after the firm rebranded from Investec Asset Management to Ninety One in a bid to separate itself from its parent following its demerger from Investec group, which is scheduled to complete this quarter.

On admission to the market, Ninety One, which controls £121bn in assets, expects to have a free float of 60-65%, with around 15% of its total share capital retained by the Investec Group.

Around 55% of the float will be held by Investec plc and Investec limited ordinary shareholders and ‘at least’ 20% will be owned by Ninety One and its staff.

The Ninety One directors believe a listing will position the firm for its next stage of development, creating a suitable structure for talent attraction and retention and aligning the business and its staff for long term success.

It also noted the float would allow the firm to operate as an independent business, benefiting clients, employees and shareholders.

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