The JSE listing of South African billionaire Patrice Motsepe’s African Rainbow Capital (ARC) Investments reflects the progress of transformation in the financial services sector, a JSE spokesperson said today.
ARC Investments made its debut on the South African bourse at 9am today, with the share opening trade at R8.68.
Speaking on the significance of the listing, Donna Nemer, the director of capital markets at the JSE, said creative ways such as this were needed to enable economic transformation.
“We need to find creative ways to accelerate economic transformation. Using capital markets to do that is the best you could hope for. That allows direct membership of individuals with assets that can be invested towards transformation,” Nemer said.
Motsepe expressed his gratitude to the ARC Investments board, which helped make the listing possible.
“Black and white South Africans can work together, not just to build world-class companies, but also to create jobs and express our confidence in the economy,” he said.
In his speech, Motsepe said this listing came after a 17-year journey.
“I put aside R200 million about 15 years ago. It was part of a strategy to diversify and get into financial services,” he said.
At the time, Sanlam chief executive Johan van Zyl and Motsepe decided to work together to help build investment and equity in Sanlam, which was going through a difficult time, as well as a “world-class” financial services company.
“We had to compete not just against the best in South Africa, but against the best in the world,” Motsepe said.
“Despite our political challenges, this country has got the most wonderful people; the most caring, entrepreneurial and hardworking people. That gives us confidence.”
ARC Investments is a capital raising and investment entity incorporated in Mauritius. Investors will have the opportunity to invest in a permanently broad-based, black-controlled company with a diversified portfolio of investments.
African Rainbow Capital Proprietary Limited will remain the majority shareholder of ARC Investments. Shareholders will invest alongside ARC in the initial portfolio, which is made up of 16 investments in the financial services sector and 17 nonfinancial services investments.
Financial services include interests in Alexander Forbes, Alexander Forbes Group, Indwe Broker Holdings, Senayo Securities and Santam. The portfolio includes investments in agriculture and food production, building and construction, energy, information technology and communications, investment holding companies and real estate businesses. Investments in telecommunications are the most significant.
African Rainbow Minerals
The annual results for Motsepe’s African Rainbow Minerals (ARM) for the year ended June 30 were also released today. Headline earnings increased 204% to R3.19 billion, with headline earnings per share at 1 684c compared with the 494c reported previously.
ARM declared its highest dividend to date at 650c per share, up 189%.