African Rainbow Capital Investments has listed in the “Financials – Speciality Finance” sector of the Main Board of the Johannesburg Stock Exchange.

ARC Investments said that the Offer was oversubscribed at market close on Monday, September 4, 2017.

Due to the strong demand for the Offer Shares, ARC Investments has decided to increase the number of Offer Shares issued from 223,147,060 to 258,441,178, all of which will be issued at R8.50 per Ordinary Share. 

The gross proceeds receivable by ARC Investments from the issue of the Offer Shares and the issue of the Cornerstone Subscription Shares to the Cornerstone Investors is R4.3bn.

Of the R4bn targeted from the listing, R1.9bn was raised from a private placing of the shares with selected investors, while the Public Investment Corporation, Sanlam Private Wealth and the government of Singapore’s GIC Private Limited sovereign wealth fund have pledged another R2.1bn — acting as cornerstone investors.

The net proceeds will be contributed by ARC Investments to the ARC Fund as a capital contribution immediately following the Listing.

The Settlement Date and Listing Date are expected to occur on Thursday, September 7, 2017.

Through the ARC Fund — in which the public will own 49% on listing while ARC retains the rest — ARC Investments will give investors indirect access to its shares of the following companies: 4.99% of Alexander Forbes Limited, the retirement administrator’s African business; 1.45% of Alexander Forbes Group; 14.76% of mortgage originator Ooba; 2.93% of healthcare investment holding company Afrocentric Health; 13.72% of specialist investment manager Colourfield; 25.45% of insurance broker Indwe Broker Holdings; 20% of telecommunications company Rain; 18.4% of construction materials company Afrimat; 25% of phosphate miner Elandsfontein; 1.7% of IT group EOH; 15% of agri investor Acorn Agri; 20% of wool and mohair processor BKB; 46.4% of online property manager PayProp; 20% of luxury real-estate development Val de Vie; and 10% of Humanstate, which developed PayProp and runs a philanthropic organisation.

ARC Investment’s directors have placed the value of this portfolio at R4.5bn.

Its holdings in businesses such as stock exchange A2X, investment firm Bravura, research and broking firm Constellation Capital, short-term insurer Santam, and Sinayo Securities were filed under "other financial services", comprising just 5% of the ARC Fund's value, the company said.

"The universe for attractive empowerment transactions is vast and is not limited to a certain sector or size," said Johan van der Merwe, ARC’s joint-CEO.

"In order to increase the scope of our potential transactions [in diversity and size] we believe it makes sense to stretch our investment reach by accessing the capital markets. This will allow ARC to share the competitive advantage that its investment vehicle brings. The impact of empowerment is therefore enhanced by bringing together empowerment and public funding."