IPO Altvest Capital Limited A Share: Umganu

Altvest Capital Limited A Share: Umganu

Altvest Capital Limited A Share: Umganu  

Relevant Documents

Prospectus

Abridged Prospectus

Introduction

Altvest is an investment holding company operating in the financial services sector that facilitates access to bespoke investments and simultaneously provides funding to South African businesses. It focuses on initiatives to facilitate the funding of SMEs in South Africa and encourages the participation of retail investors in the financial markets by allowing them to invest in bespoke investments.

?Altvest’s mission is to provide SME’s with access to funding for their growth ambitions, via both debt and equity funding solutions. For both solutions, Altvest allows the South African public to participate in the funding through either equity or debt listed instruments.

?Altvest’s ability to advance loans, i.e., its debt solution, is via the Altvest Credit Opportunities Fund (“ACOF”) which provides SME’s with an alternative to traditional banking funding (which most don’t qualify for) and other SME funders (should their terms be unsuitable).

?Equity capital is deployed following a rigorous process whereby the public is invited, via the subscription for Altvest instruments, to crowdfund the capital requirements of the businesses being offered.

?Summary of the investment offering

?Umganu Lodge was Altvest’s first investment. Umganu Lodge is a luxury villa, situated on the Sabie River, adjacent to the world-renowned Kruger National Park. The majority lodges adjacent to Umganu have historically been owned by wealthy non-South Africans.

Altvest acquired 50% of the lodge for R15 million (total value R30 million), paid for out of Altvest’s own cash reserves. Altvest’s express intention was to issue an instrument to allow ordinary South Africans to share in the economic returns generated by the lodge alongside Altvest and replenish Altvest’s cash reserves as a result.

To give effect to this intention, Altvest issued the A Shares, whereby A Shareholders enjoy an Economic Interest directly linked to Altvest’s equity investment in Umganu. As at the Last Practicable Date investors have subscribed for 6 075 326 A Shares since the A Shares were listed on the CTSE, at an average price of R1.60 per A Share, raising R 9 720 522 in aggregate. ?The remaining 3 924 674 A Shares are available for investment, at a price of R 1.80 per A Share in terms of the Capital Raise. The net asset value per A Share, based on the current value of the lodge (as detailed in Altvest’s annual financial statements for the year ended 29 February 2024), is estimated to be R2.30 per share. This is based on the most recent transaction in Umganu shares in November 2023, as announced on the CTSE on 16 November 2023, at a valuation of R46 million.

While Altvest owns 50% of Umganu, it has made available an Economic Interest of up to 43.33% of Umganu to A Shareholders (of which 26.32% has previously been subscribed for), with Altvest retaining a carry of 6.67% in the value of the asset. Altvest is now offering investors an opportunity to subscribe for a 17.01 % Economic Interest in the remaining unissued A shares via the Capital Raise (bringing the total Economic Interest of A Shareholders in Umganu to 43.33%). 

?Please see detailed breakdown in the Abridged Prosectus

Important dates

Learn more about Altvest offerings on EasyEquities: 

https://campaign.easyequities.co.za/altvest

For more information please visit:

https://altvestcapital.co.za/altvest-capital/