138 Student Living To Raise More Than J$2 billion via APO  

  • 138 Student Living is looking to raise in excess of J$2 billion via an additional public offer (APO). The company released the prospectus on Friday.
  • The offer will be opened on September 8 and close on the 6th of October. The company will issue 513.97 million new ordinary shares, of which 195.46 million shares will be accessible to the general public for J$4.40 apiece.
  • The company has also set aside 318.52 million shares for current shareholders, staff members, and other strategic partners. Those shares will be made available at $4.05.
  • The proceeds of the APO will be used to reduce the Company’s debt by J$1.5 billion to J$2.0 billion; a 36% - 48% reduction.  This reduction in debt is expected to reduce the Company’s interest cost by J$112.5 million to J$160 million and principal payments by J$143 million to J$260 million per annum. This would result in estimated total savings between J$255.5 million to J$420 million which could be annually distributed to shareholders via dividends.

  (Source: JSE)