African Rainbow Capital Investments (ARC Invest) is planning to raise R750 million through a rights offer which is set to begin on Monday, 4 December 2023.
ARC Invest is an empowerment investment holding company with shareholdings in numerous high-profile businesses, including Rain, Tyme Bank, AlexForbes, Val de Vie, and A2X.
ARC Investments will raise R750 million through an offer of 150 million ordinary shares at a price of R5.00 per rights offer share.
There will be a ratio of 11.06579 rights offer shares for every 100 existing ordinary shares held on the record date for the rights offer – Friday, 1 December 2023.
The rights offer price represents a 7.3% discount to the 30-day volume weighted average price of the ordinary shares as of 10 November 2023.
Application will be made to the JSE and A2X for the listing of the rights offer shares on the securities exchanges operated by the JSE and A2X.
The purpose of the rights offer is to raise additional capital for ARC to invest in the ARC Fund for use in its existing portfolio companies.
The money will also be used for future acquisition opportunities in line with the ARC Fund’s growth strategies and investment mandate.
The investments will include:
- New market expansions for Rain and continued development of its existing product offering, such as RainOne.
- Continued expansion opportunities at Tyme, most notably through Tyme Global, which continues to see success in the Philippines with GOtyme.
- Supporting the investment strategies of various fast-growing ARC Fund investee companies such as Autoboys, Linebooker, and Apollo.
- Fulfilling general liquidity requirements of the ARC Fund.
The additional capital of approximately R742.35 million is expected to be sufficient to meet the medium-term funding requirements of the ARC Fund.