Sygnia plans to list on the Main Board of the JSE in the Financial Services sector on Wednesday, 14 October 2015.
Sygnia plans to list on the Main Board of the JSE in the Financial Services sector on Wednesday, 14 October 2015.
The company made 31 224 834 shares, representing 22.8% of the company’s market capitalisation, available as part of a Private Placing at a price of R8.40 per ordinary share. Subscriptions of 19.8 times the Placing size were received, and the company successfully raised R262 288 606. 137 178 000 ordinary shares in Sygnia will be listed in the Financial Services sector of the JSE under the abbreviated name “SYGNIA” with share code: SYG and ISIN: ZAE000208815.
As per the pre-listing statement, in allocating the shares Sygnia gave preference to BEE shareholders, as well staff, clients and supporters of Sygnia. It also allocated some shares to institutional shareholders who expressed an interest in holding the shares over the long term. The balance was allocated to the retail market.
“We were very humbled by the level of interest and support expressed for Sygnia and its plans. Many of our potential investors liked our low-cost, market disruptor business model,” said Magda Wierzycka, Sygnia’s CEO. “This is a great validation of our core belief that South African savers are ready for low cost financial services products and index-tracking funds in the face of low real returns, an uncertain future and the underperformance by many active asset managers”.
Sygnia has a reputation for innovation within the financial services industry. In 2013 the company launched its range of low cost savings products linked to index-tracking, charging just 0.40% per annum for a combination of a retirement annuity and an investment product. This has shaken up the industry which is used to charging well in excess of 1% for similar products.