JOHANNESBURG, Sept 5 (Reuters) - An initial public offering offer by South Africa’s ARC Investments was oversubscribed, the company co-founded by mining tycoon Patrice Motsepe said on Tuesday, prompting it to offer more shares.
ARC said last month it would sell shares worth 4 billion rand ($309 million) in an IPO that values the company at 8.5 billion rand, with about 25 percent sold to three cornerstone investors, including Singapore’s GIC Pte Ltd .
The company, which said it will list on the Johannesburg Securities Exchange on September 7, said the offer was oversubscribed and that it will offer a further 35 million shares at 8.50 rand each.
“The gross proceeds from the offer will increase from 1.9 billion rand to 2.2 billion rand,” ARC said in a statement, adding that together with the funds from cornerstone investors it would have raised 4.3 billion rand in total.
ARC was formed about a year ago by Motsepe and two other veteran financial services executives, Johan van Zyl and Johan van der Merwe, to build a company controlled by black people and spanning everything from life insurance, healthcare, money management and banking.
More than two decades after the end of apartheid, many black South Africans still feel excluded from the economy, despite laws and industry efforts to broaden ownership of the JSE.
Other cornerstone investors are the Public Investment Corporation, Africa’s biggest pension fund with 1.8 trillion rand in assets under management, and Sanlam Private Wealth, the asset management arm of top South African insurer Sanlam .
$1 = 12.9500 rand Reporting by TJ Strydom; editing by Jason Neely