Investec to spin off asset management business Ninety One

FINANCIAL services group Investec is forging ahead with the spin-off of its asset management business after it announced an initial public offering (IPO) of Ninety One shares.

The group said the global offer would consist of up to approximately 10 percent of the combined total issued Ninety One shares to be sold to new or existing institutional investors.

The intention to float follows the announcements by Investec plc and Investec Limited in February regarding the successful outcome of the Investec shareholder vote to proceed with the demerger and listing of Ninety One.

Investec said that Ninety One plc shares would be listed on the Main Market of the London Stock Exchange (LSE), with a secondary inward listing on the JSE and the Ninety One Limited shares would be listed on the JSE after the demerger.

Ninety One had £121 billion (R2.36 trillion) in assets under management at the end of September and it intends to have a free float of 60 percent to 65 percent of its issued shares. The group expects to make its debut on March 16 on both stock exchanges.

Hendrik du Toit, Investec joint chief executive and Ninety One founder, said the spin-off was an important development after 29 years as part of a diversified financial services group.

“This transaction strengthens our offering to clients as an independent specialist investment manager,” Du Toit said. “Combined with our unique ownership structure, this enhances our efforts to attract and retain the very best talent. We believe this will benefit our shareholders.”

Du Toit said that the dual-listing structure would acknowledge their South African roots, while the London listing would position Ninety One for continued international growth.

The Ninety One group’s investment proposition for clients centres on its range of differentiated strategies managed by its specialist investment teams, providing access to a diverse range of asset classes and regions globally.

Currently, the Ninety One group serves its client base through five regional teams known as “Client Groups” in Africa, the UK, Asia Pacific, the Americas and Europe and across two distribution channels, Institutional and Advisor.

The Ninety One boards include Gareth Penny as independent non-executive chairman and Colin Keogh as senior independent director.

The group said the boards would include other independent non-executive directors like Busisiwe Mabuza.