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IPO Readiness Advisory

Advising in the listing of one of Africa’s largest power producers

Background to the transaction

  • During 2017, the President announced the listing of the country’s crown jewel – state controlled power producer
  • Mid-2018 the Issuer appointed YW to advise on IPO Readiness and execution
  • The IPO will be a ground breaking transaction, the largest IPO in the history of the country, increasing the visibility of the Company, the sector and the country on an international platform. Furthermore, attracting other local companies who look to follow-suit in bolstering the financial markets with further listings and the ever increasing international exposure of the country
  • The increased exposure for the local stock exchange attracts not only international and local investor sentiment but additionally, the opportunity for experienced international advisors to leave behind a important skill. We look to leave behind a thriving stock exchange and number of people/companies inspired to boost the local financial economy

Our role means we were required to interface

  • The Issuing Company: with no previous equity capital market exposure and due to the President requirement of a privatisation via the exchange, the Company was prone to public media sentiment;
  • Government: including local regulators and ministries;
  • The local stock exchange: which was extremely nascent and will limited liquidity;
  • The Banking syndicate appointed to place the shares: had limited equity listing experience who too needed advice on various valuation and structuring options; and
  • Technical Advisors: Lawyers, Public Relation communicators, and other advisors in-country with little or no capital markets experience
Key Indicators
Issuer Sector
Power and Energy
Use of Proceeds
Issuers investments
IPO Date
March 2019
Currency
Local
Company Size
ZAR21 billion
Issue Size
ZAR670 million
YW Role
Advisory to the Issuer