IPO Altvest Capital Limited B Share: Bambanani

Altvest Capital Limited B Share: Bambanani

Altvest Capital Limited B Share: Bambanani  

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

​Altvest agreed to acquire up to 46% of the ordinary shares in Bambanani at a valuation of R27 million for Bambanani’s business as a whole. The proceeds from the issue of shares by Bambanani were going to be applied to Bambanani’s expansion in pursuance of its objective to scale operations and roll out its business model in more locations.

To facilitate Altvest’s investment in Bambanani, Altvest authorised the allotment and issue of up to 1 250 000 B Shares at a value of R 10.00 per B Share. The successful total subscription would raise up to R12,5 million for Bambanani, with Altvest procuring up to 46% interest in the group. Altvest had conservatively valued Bambanani’s business at R27 million.

In the case of Bambanani, no cash was deployed upfront for the acquisition of shares in Bambanani. Altvest offered investors the opportunity to subscribe for B Shares, using the proceeds to acquire new ordinary shares in Bambanani. As at the Last Practicable Date, B Shareholders have subscribed for 531 156 B Shares at an average price of R11.95 per B Share since the B Shares were listed on the CTSE, raising R 6,347,314 in aggregate. The remaining 718 844 B Shares are available for investment, at a price of R11.00 per B Share in terms of the Capital Raise. Please see detailed breakdown in the Abridged Prosectus.

Altvest will use the proceeds of the Capital Raise relating to the allotment and issue of B Shares to acquire or subscribe for more shares in Bambanani. These will either be acquired from existing shareholders of Bambanani or through the issue of new shares in Bambanani, which would increase the cash resources of Bambanani.

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/