The asset management arm of Investec is proceeding with listing in March, despite volatility in global markets due to the coronavirus
Ninety One, formerly known as Investec Asset Management, said on Monday it planned to raise as much as £226.1m when it lists in Johannesburg and London later in March.a price range of 190 pence to 235p per share, valuing itself between £1.75bn to £2.1bn, and is proceeding with its demerger despite global markets recently being pummelled by fears over the coronavirus.
“In spite of the current backdrop of market volatility and uncertainty, we remain committed to the execution of this transaction, because of its long-term benefits,” CEO Hendrik du Toit said. The valuation was in line with the market's expectation, and at its midpoint, a forward price-to-earnings ratio of 12.8 times could be estimated, said David Talpert, speciality finance analyst at Avior Capital Markets. This was comparable to its global peers, which trade at a PE of between 12 and 15 times.
Sanlam Private Wealth investment analyst Renier de Bruyn said Ninety One's forward PE was above that of Coronation's 11 times, “but deservedly so, given the better net investment inflows from Ninety One, which is benefiting from a stronger international distribution footprint”.
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