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Johannesburg - Investors who bought shares in Alexander Forbes’ initial public offering have already made a handsome profit.
Most of the attention on Thursday morning was on the listing of Alexander Forbes, which returned to the JSE after private equity investors delisted the financial services group in 2007.
In the early afternoon Alexander Forbes was the busiest share on the JSE in terms of volume and one of the top ten shares in terms value, after 30.8 million shares were traded at a value of R260.4m.
Alexander Forbes issued new shares in an initial public offering at R7.50 per share, which enabled the company to raise R3.7bn and put its market value at about R10bn.
By early afternoon the share traded at R8.40 per share, which means that the company’s market value has already increased by 12%. The share price opened at R8.10 and at one satage traded at a high of R8.60.
JSE CEO Nicky Newton-King said Alexander Forbes was rejoining the main board of the JSE at an expected value that would put it in the top 25% of all companies listed on the JSE. “This is testament to the work Alexander Forbes has done during its time away from us,” Newton-King told a packed JSE foyer.
The interest in Alexander Forbes pushed the Financial index 0.27% higher on Thursday, but the rest of the market mainly moved sideways as investors thought twice about valuations as the market readied to launch another onslaught on the 52 000 points level.
The All-share index was 0.3% lower at 51 756 while the Top 40 index lost 0.36% to 46 576. The Resource index, which was the strongest runner recently, lost 0.8% due to profit taking.
The Industrial index was 0.24% weaker, while the gold index fell back by 2.29% after the gold price again retreated to below $1 300 per fine ounce.
- Fin24
Most of the attention on Thursday morning was on the listing of Alexander Forbes, which returned to the JSE after private equity investors delisted the financial services group in 2007.
In the early afternoon Alexander Forbes was the busiest share on the JSE in terms of volume and one of the top ten shares in terms value, after 30.8 million shares were traded at a value of R260.4m.
Alexander Forbes issued new shares in an initial public offering at R7.50 per share, which enabled the company to raise R3.7bn and put its market value at about R10bn.
By early afternoon the share traded at R8.40 per share, which means that the company’s market value has already increased by 12%. The share price opened at R8.10 and at one satage traded at a high of R8.60.
JSE CEO Nicky Newton-King said Alexander Forbes was rejoining the main board of the JSE at an expected value that would put it in the top 25% of all companies listed on the JSE. “This is testament to the work Alexander Forbes has done during its time away from us,” Newton-King told a packed JSE foyer.
The interest in Alexander Forbes pushed the Financial index 0.27% higher on Thursday, but the rest of the market mainly moved sideways as investors thought twice about valuations as the market readied to launch another onslaught on the 52 000 points level.
The All-share index was 0.3% lower at 51 756 while the Top 40 index lost 0.36% to 46 576. The Resource index, which was the strongest runner recently, lost 0.8% due to profit taking.
The Industrial index was 0.24% weaker, while the gold index fell back by 2.29% after the gold price again retreated to below $1 300 per fine ounce.
- Fin24
