Money manager Ninety One, formerly known as Investec Asset Management, will move ahead with plans to launch an initial public offering this month despite market volatility, with a valuation of up to £2.17 billion ($2.81 billion).
The price range for the IPO on the London Stock Exchange and the Johannesburg Stock Exchange was set at 190 pence to 235 pence per Ninety One share, the firm said in a news release, Monday. That gives a valuation range of £1.75 billion to £2.17 billion.
Once the firm is separated from its parent company Investec Group, 10% of Ninety One's capital will be issued to new investors, while shareholders of Investec Group will retain a 55% stake in the money manager. The firm had £121 billion ($148.6 billion) in assets under management as of Sept. 30.
Following the IPO, set for March 16, 15% of the combined total issued share capital of Ninety One will be retained by Investec Group. A further 20% of the combined total issued share capital will be retained by an employee share-ownership vehicle for certain staff of the firm. The vehicle, known as Forty Two Point Two, intends to purchase up to 46,135,704 of Ninety One shares in efforts to increase its stake in the company beyond 20%.
"In spite of the current backdrop of market volatility and uncertainty, we remain committed to the execution of this transaction, because of its long-term benefits, founder and CEO Hendrik du Toit said in the news release. "We are encouraged by significant investor interest."
The dual listing is expected to raise £181.9 million to £226.1 million in proceeds.