Brainworks Limited, a Mauritian-based holding company with a diversified Zimbabwean investment portfolio, has made its submission to list on the Johannesburg Stock Exchange (JSE) main board.
Founder and non-executive director George Manyere in a statement said the listing of the portfolio of premium Zimbabwe-based assets is aimed at improving access to capital; both debt and equity. “We believe a listing on the JSE will provide the platform for us to access deeper and more liquid capital markets in South Africa thereby affording us greater financial flexibility to grow our business,” he said.
The initial public offering is set for next month. Brainworks was established in 2011 by George Manyere and Walter Kambwanji, with the aim of becoming a leading investment group as well as a co-investor of choice to foreign businesses seeking pro-active and value adding equity partners.
Since inception, the group has accumulated investments in; inter alia, the hospitality, real estate and financial services sectors. Brainworks’ investment interests currently comprise of, but not limited to: a 57,7 percent interest in African Sun, a hotel investment and management company listed on the Zimbabwe Stock Exchange (ZSE), with seven resorts and two casinos under management;
Other investments include a 66,8 percent interest in Dawn Properties, a real-estate investment holding, development and property consulting services group, with a portfolio of properties valued in excess of $82 million (gross), consisting primarily of hotel assets and a 31,1 percent interest in GetBucks, a ZSE listed deposit-taking micro-finance institution.
In addition they have a 49 percent interest in GetCash, the mobile money transfer platform with a widespread, low-cost, scalable and easily accessible agent network enabling customers to deposit cash in exchange for credit on mobile wallets; and a 100 percent interest in GetSure, a licensed life assurance company offering funeral cover, accident plan and savings insurance products.
Brainworks’ gross assets as at December 31, 2016 totalled $151 million and revenue generated from its operations amounted to $48 million. Normalised EBITDA was $7 million for the financial year ending December 31, 2016. Net assets, including minority interests, stood at $87 million as at December 31, 2016.
Brett Childs, chief executive officer, said, “The proceeds from this private placement will be used to strengthen the group’s balance sheet through reduction of debt, grow and expand the underlying businesses in accordance with our investment strategy and for working capital.”