Sygnia Aims to Raise R300m in Offering

Money manager Sygnia Group plans to raise about R300m in an initial public offering and is scheduled to list on the JSE main board in October.

Sygnia CEO Magda Wierzycka said last week the company would use the capital raised to grow the business and look at strategic acquisitions and opportunities offshore. “We are looking at about R300m.”

A date of October 14 had been set and Nedbank had been appointed as the adviser, Ms Wierzycka said on Thursday.

“We don’t necessarily need capital. We want to deploy the cash to increase the profile of the business especially in the index-tracking space. We will look at strategic acquisitions if it makes sense. We are looking for opportunities offshore.”

As far as the listing was concerned, Ms Wierzycka said the company would aim for a diversified shareholder base that had a good balance between retail and institutional investors.

She said there were plans to top up the company’s black economic empowerment (BEE) shareholding. “There will be an opportunity to bring in a (BEE) institutional partner at the listing,” said Ms Wierzycka.

Sygnia is wholly owned by staff and management. A BEE ownership structure for staff was in place, Ms Wierzycka said. In 2013 black staff at Sygnia acquired a 20% shareholding through the Ulundi Trust.

Ms Wierzycka said Sygnia was a diversified financial services business with R120bn in assets under management. The retail offering includes stockbroking, exchange-traded funds and unit trusts.

The company also has an asset management capability.

“There is always appetite for businesses that can show growth,” Ms Wierzycka said. She could not disclose what the company’s turnover was.

On the listing price and the number of shares to be issued, she said the valuations were still being ironed out. “All I can say is that we are looking at listing the business at a price:earnings ratio of between 10 and 12.”

Sygnia began in November 2006 with about R1.5bn in assets under management.