The JSE, before the year ends, will see another property counter making its debut on the local bourse, with Acsion Limited (Acsion) planning to list on the main board on December 9.
The specialist property developer plans to list under the Real Estate Holding and Development banner on the JSE.
Acsion says that the JSE has granted it a listing of up to 414 761 956 shares, as it aims to raise about R200 million through an initial private placement with institutional investors.
The company is offering 19 801 980 shares for subscription, at a range of between R10.10 and R10.80 per share.
Acsion explains that at the time of listing, it will have a total number of fully paid shares of between 413 478 495 and 414 761 956, providing a market capitalisation of at least R4.2 billion “on the basis of the offer being fully subscribed”.
In a statement CEO of Acsion Kiriakos Anastasiadis said the listing “marks the next evolution in our quest for growth”.
“Our track record speaks for itself and we have increased Acsion’s net asset value by more than 100% per year over the past 10 years,” Anastasiadis said.
The listing, he explained, will provide investors with an opportunity to participate in sustained capital growth prospects and exposure to a specialist property developer.
Investec Bank is the book runner for Acsion’s listing. While the JSE over the last three years has seen the listing of Real Estate Investment Trusts (REITs), Acsion says the company focuses on the delivery of net asset value growth on completed properties and new developments. It also benefits from profits on property developments completed for sale, and less of purchasing of existing properties.
On the financials, Acsion’s current gearing is sitting at 7%, far below the average of its listed counters of between 30% to 40%. Its focus on developments, Acsion says, enables it to unlock “a first year development yield of 15% to 20% on completion of the asset”.
The counter is a mainly retail asset player, with its portfolio of a gross lettable area of 188 416 square meters valued at R3.2 billion. Some of its assets include Gauteng regional malls: Mall@Carnival and Mall@Reds, three community malls in Gauteng, Mpulalanga and Limpopo and a light industrial development in Centurion.
The weighted average lease expiry of the portfolio is 4.4 years with an overall vacancy rate of 4.4%.
Acsion’s plans to list follows Pivotal Property Fund (Pivotal) also looking to list by December. Pivotal will come to the market as a development fund on the main board and is eyeing an equity injection of around R1 billion. It expects to list with a market capitalisation of R4.8 billion.