Money manager Sygnia Ltd. said it plans a sale of shares to selected investors starting Thursday to raise as much as 226 million rand ($16 million) before its shares start trading on the Johannesburg Stock Exchange on Oct. 14.
The funds will be used to increase regulatory capital, develop systems, conduct marketing and research and to expand, the Cape Town-based company said in a statement. The maximum amount of shares on offer is 31.2 million priced at 8.40 rand each, it said.
Sygnia earned profit of 57.8 million rand on revenue of 239 million rand for the year ended Sept. 30, according to its statement. The company plans to raise about 300 million rand in an initial public offering, Business Day reported April 7.
Sygnia Asset Management Pty Ltd., a unit which began in 2003, has 140 billion rand under management in vehicles such as multi-manager funds, index-tracking funds and funds of hedge funds, according to the company’s website.