Good first day for Alexander Forbes

2014-07-25 08:29

Financial services group Alexander Forbes Group Holdings Ltd had an impressive first day after listing and starting to trade on the main board of the Johannesburg Stock Exchange.

This follows a private placement of 431.9 million shares before the public listing.

At an offer of R7.50 per share, giving the company a market capitalisation of R9.7 billion, the listing represents the largest offer in South Africa since 2010 and the fifth largest offer on record.

Mercer Africa Ltd, a wholly owned subsidiary of Marsh and McLennan Companies Inc – a global leader in health and retirement services for employees – acquired a 14.9% stake in Alexander Forbes at listing and will acquire a further 19.1% stake, subject to regulatory approvals.

The share price shot up from R7.50 to about R8.45 – a gain of about 12%.

Group CEO of Alexander Forbes, Edward Kieswetter said: “Our return to the JSE is an exciting and momentous occasion. It is also a historic moment for our permanent employees who each have been given shares, which will vest after three years as our recognition of their continued contribution to our success. Listing [also] gives impetus to our current strategic intent and growth plans.”

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