Balwin Properties eyes JSE to tap house demand

(Shutterstock)
(Shutterstock)

Johannesburg - Balwin Properties, a South African housebuilder, said it plans to sell shares on the Johannesburg Stock Exchange to capitalise on growing demand for residential property, particularly on secure housing estates.

“Listing on the JSE will grant us access to the capital markets and enhance our profile,” Chief Executive Officer Stephen Brookes said in an emailed statement on Tuesday. “It will also support our strong development pipeline and geographical expansion.”

Balwin is the second company in as many days to announce an intention to list on the JSE, after construction-equipment company Waco International on Monday. The exchange had the most first-quarter IPOs this year since 2008 as the FTSE/JSE All-Share Index rose to a record, although activity has since quietened as the gauge declined by about 9%.

Johannesburg-based Balwin is owned 70% by management and 30% by private-equity partner Buffet Investments. The company expects profit after tax of about R550m in the year through February 2016, and predicted profit growth of above 25% in the following 12-month period.

Investec has been appointed book runner for the proposed listing.

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