Brait settles on IPO for Premier

Brait settles on IPO for Premier

Brait has announced that it will list Premier on the JSE after abandoning plans to do so late last year citing a non-conducive capital markets’ environment despite receiving a significant amount of investor interest. Instead, an agreement was reached with Titan and Rand Merchant Bank to acquire unlisted ordinary shares in Premier for an aggregate consideration of USD 191mn (ZAR 3.5bn).

Read a related article here.

While this deal to acquire unlisted ordinary shares was ongoing, the JSE-listed company was approached by a group of institutional investors, and others, who expressed an interest in giving commitments to participate in an IPO for Premier. Their participation would ensure that the free-float rules, as stipulated by the JSE, would be met thereby, facilitating a relaunch of Premier’s IPO.

Brait has again opted for an IPO of Premier and the company’s board will proceed with a listing on the 24th of March.

The offer
The offer is intended to raise minimum gross proceeds of USD 191mn  (ZAR 3.5bn), though this figure may increase to ZAR 3.6bn if the overallotment option of ZAR 100mn is exercised.

Offer price: ZAR 53.82
Valuation: USD 377mn (ZAR 6.9bn)

Should the overallotment be exercised in full, Brait will receive gross proceeds of ZAR 3.6bn which when added to its share of Premier’s November 2022 pre-listing distribution of ZAR 950mn, totals ZAR 4.6bn. This addresses Brait’s future liquidity requirements and the company will retain a 47.1% stake in Premier after the IPO.

Separately, the board has agreed to replace Ethos with TRG as the JSE-listed company’s contract investment adviser.