Africa Equity

The autumn IPO season in EMEA got off to a promising start on Wednesday when Steinhoff International, the South Africa-based retail group, announced the launch of what will be one of the biggest IPOs on the Johannesburg Stock Exchange in recent years. If the hospitable market conditions hold, bankers are confident that it will be the first of many important deals over the coming months, writes Aidan Gregory.

Two pieces of the autumn IPO jigsaw have been revealed this so far this week by intention to float announcements. The market has also gained visibility on yet another deal by a UK closed-end investment fund.

Resilient Reit, the South African real estate investment trust, completed an accelerated capital increase on Tuesday morning that was tripled in size due to the strength of the demand.

A solitary capital increase from Monday was the stand-out trade of a meagre bunch in equity capital markets this week, with the IPO market on pause until September.

Foschini Group, the South African fashion retailer, raised R2.5bn ($190m) of equity capital on Monday night, in an accelerated capital increase that was increased from R2bn.

Foschini Group, the South African retailer of clothing, cosmetics and jewellery, has launched the sale of R2bn ($150m) worth of new shares to repay a loan used for an acquisition in Australia.

Atlas Mara, the London-listed company co-founded by Bob Diamond that invests in African financial services, announced a $200m equity capital raising on Wednesday, most of which will be taken up by Fairfax Africa Holdings Corp.

Sibanye Gold, one of the largest South African gold mining companies, has raised R13.5bn ($1bn) to refinance its acquisition of Stillwater in the US, after its rights issue was multiple times oversubscribed.

Barclays has sold more than half its stake in Barclays Africa, its separately listed South African subsidiary formerly known as Absa Bank, through a huge R37.7bn ($2.9bn) block trade on Wednesday night that was covered in 45 minutes.

The drought of equity-linked bond issuance in EMEA has suddenly ended this week, with the launch of two deals in three days, by GN Store Nord, the Danish maker of hearing aids and audio devices, and Impala Platinum Holdings, the South African mining company.

A sell-off of shares in Sibanye Gold, one of the largest South African gold mining companies, entered its second day on Friday after the company unveiled terms for a highly dilutive R13.5bn ($1bn) rights issue on Thursday morning.

What, on Wednesday, seemed to be primary capital markets gung-ho for any deal imaginable by Thursday looked more like a market on the skids as concerns intensified over the endless controversies dogging US president Donald Trump’s administration.