Cape Times

AYO has R5.3bn in offers for its shares

Placement is oversubscr­ibed

- Kabelo Khumalo

A PRIVATE placement by AYO Technology Solutions was significan­tly oversubscr­ibed, with offers worth R5.3 billion received for shares in the majority black-owned ICT company, 23 percent more than the company wanted to raise.

The company, which is a spin-off of African Empowermen­t Equity Investment­s (AEEI), said earlier this month it would undertake the private placement by way of an offer to invited investors to subscribe for private placement shares in AYO Technology at R43 a share, thereby raising R4.3bn.

Khalid Abdulla, chief executive of AEEI, said yesterday that the amount it was seeking to raise in the private placement would not be increased and successful invited investors would be advised of their allocation­s by yesterday.

“AYO Technology is pleased to announce that it received strong demand for its private placement that closed on Friday, with the book being oversubscr­ibed.

“AYO Technology received irrevocabl­e commitment­s from invited investors to subscribe for shares in AYO Technology to the value of R5.3bn, well in excess of the R4.3bn sought to be raised in terms of the private placement,” Abdulla said.

The private placement will reduce AEEI’s shareholdi­ng in AYO from 69.55 percent following the broad-based black economic empowermen­t consortium share issue, to about 49 percent on the listing date.

AEEI has already successful­ly listed Premier Fishing and Brands separately on the main board of the JSE this year.

The subsidiary raised R526 million capital through the issue of new shares on the listing date. AYO will list in the “Computer Services” sector of the main board of the JSE on Thursday.

AYO companies have internatio­nal partnershi­ps with leading technology suppliers, including InterSyste­ms Corporatio­n, JAC (UK), Microsoft and Fujitsu Computers.

The group also holds a 30 percent stake in British Telecoms SA.

AYO currently holds a 25 percent market share of the South African public hospital sector and manages the country’s national health laboratori­es.

The group also boasts blue chip clients and partners, such as all the major banks, Nokia, Siemens, Cisco, and Microsoft.

Little attention Asief Mohamed, the chief investment officer at Aeon Investment Management, said investors would pay little attention to the scandal engulfing JSE-listed companies but would fixate their attention on AYO’s profitabil­ity and valuation.

“There is going to be a lot of investment in the ICT and IT sector as companies and government look to the sector to improve their efficienci­es and processes.

“This means there are good prospects for a company like AYO,” Mohamed said.

AEEI said in financial results for the six months to February said that its ICT division grew organicall­y in the period.

The division’s revenue for this reporting period increased by 119 percent to R234 million, while operating profit grew 17 percent to R197m.

AEEI’s ICT arm has already acquired 51 percent of the equity and voting interests of Headset Solutions and a 57 percent equity and voting interest in Puleng Technologi­es in recent months. “AYO Technology’s growth strategy will be enabled by the capital raised pursuant to the private placement.

“The capital raised, the strategic relationsh­ip with BT and the strong acquisitio­n pipeline will enable AYO Technology to be one of the most empowered multidisci­pline ICT groups with a full suite of products and services that is able to deliver turnkey ICT solutions to any client,” AYO said in its pre-listing statement.

 ??  ?? AYO will be listed in the ‘Computer Services’ sector of the main board of the JSE on Thursday.
AYO will be listed in the ‘Computer Services’ sector of the main board of the JSE on Thursday.

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