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Johannesburg - Capital Appreciation [JSE:CTA], a special purpose acquisition company (SPAC), announced on Monday that it has successfully raised R1bn in its private placement and its shares will commence trading on the JSE on Friday October 16 2015.
The R1bn raised is double the minimum prescribed amount required to qualify for a JSE main board listing.
According to the company it will be the first SPAC to be listed on the main board of the securities exchange operated by the JSE. The Public Investment Corporation (PIC) forms part of the founder group and PIC CEO Dr Daniel Matjila and PIC deputy chair Roshan Morar are joining the board of Capital Appreciation.
“The reputations and experience of the team behind Capital Appreciation was a large motivational factor for our investment. The model is also extremely interesting and may well have application in achieving some of our industrialisation policies,” said Matjila.
Capital Appreciation pointed out that it enjoys substantial Black Economic Empowerment (BEE) shareholder support with significant investments from the Capital Appreciation Empowerment Trust and African Rainbow Capital. Other BEE enterprises also participated in the private placement alongside traditional institutional investors and wealth managers.
"My founder colleagues and I are delighted with the outcome of the capital raising. Where several quality enterprises were competing for investment funds all in the same week, to have raised R1bn for a new SPAC, a company with no operating assets, is not only a wonderful expression of support, but more particularly, an acknowledgement of trust in the experience and integrity of our leadership," said Motty Sacks, non-executive chair of Capital Appreciation.
The executive officers of the company - and also board members - are Michael Pimstein, Bradley Sacks and Alan Salomon. Apart from Matjila and Morar, the rest of the board members are Bukelwa Bulo, Meyer Kahn, Michael (Motty) Sacks, Victor Sekese and Charles Valkin.
