Money management company Sygnia debuts on the JSE

Today saw the listing of money management company Sygnia Ltd.

The company's been around for 12 years and decided to list earlier this year.

Sygnia joins the Johannesburg Stock Exchange in a year that's seen many new listings so far.

Let's take a closer look…

Sygnia shares were in demand

Sygnia [JSE:SYG] joined the ranks of the JSE today, reports Fin24. Its share price soared by 71% at one point this morning, before falling slightly.

The company debuted at “R13.56 a share,” notes MoneyWeb.

The company sold 22.8% of its company through the sale of just over 31,000,000 shares, adds Fin24. Through a private placement “at a price of R8.40 per ordinary share,” the company “raised R262 million”.

Before listing, Sygnia’s CEO Magda Wierzycka said they planned “to attract more retail than institutional investors,” says BDLive. The company, which Ms Wierzycka and Simon Peile, her husband, own the majority of, saw a listing “as a key tool to access capital for organic growth and acquisition”.

The placement was certainly appealing to investors and “was roughly 20 times oversubscribed,” reports MoneyWeb. This led many would be investors to only receive a small amount of the shares they wanted to buy or to not gain any shares at all.

What is Sygnia?

Since forming in 2003, Sygnia has “R140 billion under management in multi-manager funds, index tracking funds and funds of hedge funds,” notes Bloomberg.

The company has caused a bit of stir since joining the SA financial industry, says Fin24. Its range of products are low cost, with fees much lower than many of its competitors.

At the end of its first day of trading, shares in Sygnia closed at R15.30.

Any shareholders lucky enough to get hold of shares through Sygnia’s private placement will no doubt be happy after nearly doubling their money in the first day of trade.


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