Transaction Capital plans to issue new shares
Minibus taxi financier and debt collector Transaction Capital said on Thursday it was looking to raise additional capital for potential acquisitions by issuing new shares to qualifying investors.
In November, the small-cap company allocated R500m for acquisitive growth, which included the Australia-based Recoveries Corporation.
"[Transaction Capital] continues to scan the environment for opportunities to make further acquisitions and to deploy capital," the company said in a statement.
"In addition, the equity raise is also expected to help continue to build trading liquidity in Transaction Capital shares."
Subsidiary SA Taxi advanced R7.2bn to finance 26,352 minibus taxis as at September 30, according to group’s financial results, which were released in November 2016.
Transaction Capital issued up to 28.4-million new ordinary shares via an accelerated bookbuild.
The stock was down 2.63% to R14.80 in midmorning trade on the JSE, giving the company a market value of R8.6bn.