[DATA PSG: PSG Group Limited] is an investment holding company consisting of underlying investments that operate across industries which include financial services, banking, private equity, agriculture and education.
(READ MORE: PSG focused on optimising existing portfolio)
The investment holding company with strategic interests in Capitec Bank, Curro Holdings, Zeder Investments and PSG Konsult, said that possible investors had already started making commitments.
“Potential investors, including the Public Investment Corporation had already committed to subscribe for up to 180 million rand of the capital to be raised in terms of the Bookbuild,” SG Group’s chief executive Piet Mouton told CNBC Africa.
The company is seeking to raise up to approximately one billion rand.
“The issue is that at this stage we need the capital as we only have 330 million rand of capital available, so we really need to build our capital base,” Mouton said.
“Our asset base currently is at 24 billion rand which is too little for a company of our size, we need a little bit of firepower,” he added.
PSG Group believes that the Bookbuild should have the added benefit of enhancing the liquidity of its shares.
The proceeds of the Bookbuild will be used to fund PSG Group’s underlying investments such as Curro’s schools projects and Zeder meant to fund existing investments and for potential expansion in South Africa and Africa.
(READ MORE: PSG acquires 50% interest in IT school innovation)
PSG Group’s market capitalisation is approximately 20 billion rand, with its largest investment being a 28.3 per cent interest in Capitec.
The CEO also said that the new ordinary shares will be issued by PSG Group under its general authority to issue shares for cash.