Investec pulls offer of minority stake in Ninety One amid market chaos

South African banking group Investec has abandoned plans to offer a minority stake in its asset management arm Ninety One due to the market meltdown.

The group said “in light of the recent volatile market conditions” amid the coronavirus crisis, it would not go ahead with the global offer of around 10% of shares in Ninety One.

But it will still press ahead with the demerger and public listing of Ninety One in London on Monday and will remain a shareholder, with a stake of around 25%.

Ninety One will be dual listed in London and Johannesburg after the move.

Fani Titi, joint chief executive of Investec, said: “Market conditions have proved particularly challenging in the recent two weeks and, while we were encouraged by the strength and quality of investor engagement in relation to the global offer, we have decided to retain our shareholding in Ninety One.

“Importantly, the financial benefits of the demerger remain. Ninety One is an excellent company, with an exceptional management team, and we have great confidence in its prospects as an independently listed firm.”

The group had said only last week that it planned to go ahead with the share sale, setting a price range of 190p to 235p a share, which would have given the group a market capitalisation of between £1.75 billion and £2.1 billion.

It had been expecting to raise up to £226 million from the float.

Investec, which manages £121 billion in assets, announced plans to split off its asset management business last year.

It comes after similar moves by the likes of Prudential, which spun off its M&G investment business last year, Old Mutual and Deutsche Bank.

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