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Johannesburg – Agricultural services group Senwes will likely list on the JSE's main board in the first quarter of 2011, subject to the improvement of market conditions and authorisation by the local bourse, acting MD Francois Strydom told I-Net Bridge on Thursday.
"It is fairly dangerous to list the company under these volatile market conditions, with the rand/dollar exchange rate looking unstable, and stock prices on the JSE coming under a lot of pressure lately," said Strydom.
"However, we are confident that by March next year, there will be less volatility in the market."
Senwes is currently in talks with the JSE to ensure that the group fulfils the listing requirements to ensure "investor comfort", he said.
The main purpose behind the listing, Strydom said, was to unlock value for its shareholders. The company will also receive increased visibility.
He added that as a listed entity, conditions for mergers and acquisitions were less onerous than for an unlisted company.
The company hopes to issue shares to both institutional and private investors in its initial public offering (IPO). He wouldn't reveal the
estimated value of the IPO.
"It's not a lot of money we are aiming for. Obviously once the listing had taken place, we will be able to declare that," Strydom said. Senwes doesn't have a prospectus yet, as the JSE listing proposal was made on May 24 010.
Reporting its results for the financial year ended April 2010 on Thursday, Senwes said profit from operations decreased to R413m from R648m a year ago.
Net profit after tax was R209m from 368 million a year ago. Senwes declared a final dividend of 15 cents which, which together with the interim dividend, resulted in 140 cents.
Earnings Before Interest, Taxes, Depreciation and Amortization amounted to R455m from R682m a year ago. Revenue was R9.03bn from R11.1bn a year ago.
- I-Net Bridge
"It is fairly dangerous to list the company under these volatile market conditions, with the rand/dollar exchange rate looking unstable, and stock prices on the JSE coming under a lot of pressure lately," said Strydom.
"However, we are confident that by March next year, there will be less volatility in the market."
Senwes is currently in talks with the JSE to ensure that the group fulfils the listing requirements to ensure "investor comfort", he said.
The main purpose behind the listing, Strydom said, was to unlock value for its shareholders. The company will also receive increased visibility.
He added that as a listed entity, conditions for mergers and acquisitions were less onerous than for an unlisted company.
The company hopes to issue shares to both institutional and private investors in its initial public offering (IPO). He wouldn't reveal the
estimated value of the IPO.
"It's not a lot of money we are aiming for. Obviously once the listing had taken place, we will be able to declare that," Strydom said. Senwes doesn't have a prospectus yet, as the JSE listing proposal was made on May 24 010.
Reporting its results for the financial year ended April 2010 on Thursday, Senwes said profit from operations decreased to R413m from R648m a year ago.
Net profit after tax was R209m from 368 million a year ago. Senwes declared a final dividend of 15 cents which, which together with the interim dividend, resulted in 140 cents.
Earnings Before Interest, Taxes, Depreciation and Amortization amounted to R455m from R682m a year ago. Revenue was R9.03bn from R11.1bn a year ago.
- I-Net Bridge
