31st Jan 2020 07:55
(Alliance News) -Â Investec PLC said its soon-to-be spun-off asset management business, Ninety One, intends to seek a listing in both London and Johannesburg.
The asset management business will be rebranded when its demerger from its banking parent is concluded on March 13. The company said back in September 2018 that it was pursuing the demerger of Investec Asset Management following a strategic review.
On Friday, Investec announced the unit's intention to undertake an initial public offering and the expected publication of a registration document.
Ninety One is seeking a listing for its PLC shares on London's Main Market with a secondary inward listing in Johannesburg. The Ltd shares will have a primary listing in Johannesburg.
It is expected that Ninety One will be eligible for inclusion in the FTSE UK and JSE SA indices.
Investec has said the name reflects the "heritage" of the new firm, given Investec Asset Management began as a start-up asset manager in South Africa in 1991.
Following the IPO, Investec said the group will retain a 15% stake in Ninety One and around 55% will be held by Investec PLC and Investec Ltd shareholders. At least 20% will be held by Ninety One staff, and 10% will held by new investors.
"Today's announcement is a significant milestone for the Investec group. The demerger and listing of a fully-independent Ninety One is a major step in Investec group's programme to simplify and focus, and positions both the Ninety One and Investec bank and wealth businesses for long-term growth. This announcement precedes a shareholder vote on the demerger and listing, scheduled for 10 February 2020," said Fani Titi and Hendrik du Toit, joint chief executives of Investec.
It is expected Ninety One shares will begin trading in London and Johannesburg on March 16.
In a brief update on current trading, Investec said Ninety One has "continued the trend of operating profit growth" with higher assets under managements and net inflows for the quarter to December 31.
By Lucy Heming;Â [email protected]
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