JSE welcomes R24 billion fintech giant

AI-powered fintech firm Optasia Group rallied in its debut on the Johannesburg bourse that marked the nation’s biggest initial public offering this year. 

The stock opened at R20.75 Tuesday and was at R19.70 by 9:10, giving the Dubai-based firm a market value of R24.4 billion. Optasia placed shares at R19 apiece last week. 

“An African company listing on an African exchange was just a natural thing for us,” founder Bassim Haidar said at the listing.

The company is eying expansion in Africa, Asia and Latin America. It will also widen its credit offerings to include buy-now-pay later options and virtual credit and will consider acquisitions in Asia or Latin America to build market presence, CEO Salvador Anglada said. 

“If we find the right company that helps us accelerate growth, we will consider it,” he said in an interview on 31 October. “We’re going to continue growing in Africa. We also see Asia as our next destination.”

Morgan Stanley and Standard Bank helped with the listing and Investec was the bookrunner.

Optasia is also expected to set a trend for other fintech firms considering bourse listings to take advantage of demand for AI-powered investments and strong recent gains on the JSE, which is traditionally known for mining and banking.

“A successful Optasia debut would be a welcome signal for South Africa’s listings pipeline, demonstrating that the JSE remains a credible platform for large, innovative, Africa-centric growth companies,” said Fatima Vawda, CEO of 27four Investment Managers.

“It could help re-energise market sentiment and showcase the exchange’s relevance beyond traditional sectors.” 

The company offers a strong investment case anchored in financial inclusion and scalable technology, Vawda said.

Founded in 2012, Optasia operates in 38 countries mostly in Africa, the Middle East and Asia. Using AI and about 5,000 data points, the company assesses creditworthiness to offer microloans and cash advances to underbanked customers through mobile partners including MTN and Vodacom.

“We’ll continue forming agreements with distribution partners and financial institutions, and we’re open to opportunities that accelerate our growth, especially in regions where we’re not yet well established,” Anglada said.