Altvest Capital range bound on first day of trading on the JSE’s AltX

Nicola Mawson

Altvest Capital, which listed on the JSE’s Alternative Exchange yesterday, was thinly traded with its shares remaining at the opening price of R6.42 during the day as the JSE continues to attract companies to the bourse.

While the stock was in demand, shareholders were hanging onto their shares under the code ALV, with less than 10% of those bids being settled. Altvest listed one million ordinary shares with an issue price of R6.50, as well as additional preference shares.

The private investment platform transferred its listing from the Cape Town Stock Exchange to the JSE’s AltX Board. Altvest is one of South Africa’s more recently established investment holding companies.

It currently provides investment opportunities in asset classes such as private equity, property and community housing, sustainable agriculture, fintech and block-chain led projects, renewable energy, and luxury assets.

The company’s prospectus indicates that its primary rationale for the move to AltX is to provide it with an ability to efficiently raise capital to fund suitable investments identified by its investment committee and provide access to capital for small and medium enterprises.

Future projects will include, venture capital, renewable energy, sustainable agriculture and block-chain led projects.

Altvest Capital funds selected local small and medium enterprises (SMEs) through debt and equity instruments that it said are accessible to retail and institutional investors. “Listing on the JSE is a strategic move that will help us reach more investors and enhance these investment and funding opportunities for all,” said Warren Wheatley, CEO and founder of Altvest Capital.

As of the end of February, it had raised R71 million for small and medium businesses through its platform. Its various key investments, Umganu Lodge, Bambanani Family Group, and Altvest Credit Opportunities Fund are the individual beneficiaries of it’s A, B, and C preference shares, respectively.

“Small and medium enterprises are essential to growing South Africa’s economy, and the JSE’s AltX Board is a springboard for SME growth. We welcome Altvest and other companies looking to enable growth and access greater liquidity, broader market reach and a deeper investor pool,” said Valdene Reddy Director of Capital Markets at the JSE.

“The JSE has seen its strongest listings pipeline in five years. We have seen incredible activity this year and a positive market reaction to the latest listings of WeBuyCars, Rainbow Chicken and Cilo Cybin.”

In September, JSE Group CEO Dr Leila Fourie said that more companies were engaging with the bourse with a view to list. The JSE had previously predicted that as many as 10 companies would join the bourse this year after only three listed last year.

For the year to end February 2024, Altvest recorded income of nearly R77m, the bulk of which was due to a once-off fair value gain on its investment into the Altvest Credit Opportunities Fund of some R75m. This resulted in a profit of R60.6m, compared with a loss of almost R37m in the previous year.

Its two largest shareholders, as of April 2022, are WGW Capital with 34%, and Tatum Keshwar Investments at 16.95%, according to its business plan.

At least R2.5m of the total offer for subscription of R6.5m, including the preference shares, was underwritten by WGW Capital, which is owned by Wheatley’s Family Trust.

Altvest was listed in the Diversified Financial Services category, which helps to diversify investment opportunities in new sectors and asset classes. Its listing increases the number of listed companies to 279 with a market capitalisation exceeding R19.7 trillion.

BUSINESS REPORT