Investec Asset Management is targeting a valuation of about £2bn when it demerges from its parent and floats later this month under its new moniker Ninety One.
The company announced on Monday the price range for the initial public offer of Ninety One is expected to be between 190p and 235p a share, giving a market capitalisation of £1.7bn to £2.2bn.
It anticipates the offer is expected to raise proceeds of approximately £181.9m to £226.1m.
The IPO, scheduled to take place on 16 March, will see Ninety One listed on both the London and Johannesburg stock exchanges.
10% of shares up for grabs
Investec Asset Management had first revealed it planned to spin-off from its parent and rebrand in November 2019.
Last month a regulatory filing confirmed that 10% of shares will be sold to new or existing institutional and other investors in the offering.
The group also confirmed Ninety One intends to have a free float of 60-65% of its total issued share capital. About 55% of this will be held by Investec Plc and Investec Limited shareholders and 15% by Investec Group.
Committed to IPO despite volatile market
Ninety One founder and chief executive Hendrik du Toit (pictured) said the firm remained committed to the IPO despite the backdrop of market volatility and uncertainty.
“We remain committed to the execution of this transaction, because of its long-term benefits. We are encouraged by significant investor interest,” he said.
“We are confident in our capital-light business model of organically developed, specialist, active investment offerings. This is supported by an attractive financial profile, carefully-developed culture, employee ownership commitment and a successful track record.”
The name of the asset management group is Ninety One in recognition of the year it was founded. The group reported £121bn in assets under management as at 30 September 2019.
