Shares in African Rainbow Capital – Patrice Motsepe’s listed BEE investment company listed at R8.68 on their debut this morning, but later dropped back to R8.49 in mid-morning trade. The shares were priced at R8.50 each ahead of Thursday’s listing, reflecting the company’s net asset value (NAV) of R8.5bn. Investment holding companies, however, generally trade at a discount to their NAV, which may explain the thin volumes at the start of its listed life. The company’s management fee has also drawn sharp criticism. Initially pitched at 1.75% of assets, that will drop to 1.25% when the fund size hits R30bn. ARC Investments (share code AIL) launched itself as a tradeable vehicle that "offers long-term capital appreciation through a permanently broad-based black-controlled investment entity". Its institutional shareholders include the Public Investment Corporation (PIC), Sanlam Private Wealth and the Singapore sovereign wealth fund, and it is managed by former Sanlam CEO Johan van Zyl, a...

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