MARKET WATCH: Paying school fees
PLG’s share placement will appeal mostly to retail investors rather than risk-averse institutional investors
More information is now at hand from private education venture Pembury Lifestyle Group (PLG), allowing investors to make an educated guess around the merits of a pending listing on the JSE. In short Pembury, which is eyeing a berth on the AltX, aims to raise R140m in fresh capital to settle debt, acquire properties and fund capital expenditure. According to an investor presentation, the group will issue 140m new shares at 100c/share. This, along with the 203m existing shares in issue and a R10m capitalisation of a shareholder loan, will mean there will be 353m shares in issue at listing with an inferred market capitalisation of R353m. The PLG listing is minuscule compared with the JSE’s existing private-education ventures: Curro Holdings and AdvTech carry market capitalisations of R19.5bn and R9.6bn. But excitable retail investors will recall that the value of the majority stake held by PSG’s private equity (the old Paladin) in Curro before listing in 2011 inferred a value of less t...
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