Alexander Forbes IPO Pricing Gives Market Value of $915 Million

Alexander Forbes Group Holdings Ltd. placed all the shares in its initial public offering at 7.50 rand, valuing Africa’s largest retirement-fund administrator at 9.76 billion rand ($915 million).

That price was in the middle of the 6.90-rand to 8.05-rand range announced by the Johannesburg-based company on June 23. Ontario Teachers’ Pension Plan Board, one of its original private-equity investors, will own 5 percent, Alexander Forbes said in a statement today.

Actis LLP and other private equity-firms that purchased Alexander Forbes for 8.2 billion rand in 2008 are exiting their investment through the IPO and sale of a 34 percent stake to Marsh & McLennan Cos.’s Mercer unit. The shares will trade from July 24 in the largest listing in Johannesburg for almost four years, according to data compiled by Bloomberg.

Mercer acquired an initial stake of 14.9 percent through the IPO and will pay the same price for its remaining holding, Alexander Forbes said.

Alexander Forbes’s preference shares climbed 4.8 percent to 8.70 rand as of 12:09 p.m. in Johannesburg trading.

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