FRANKFURT, Germany, Tuesday, December 14th 2010 [ME NewsWire]:
(BUSINESS WIRE)-- Following a successful capital increase, ADC African Development Corporation (ADC), ISIN DE000A1E8NW9, a rapidly growing financial services group focusing on the Sub-Saharan Africa (SSA) region, has joined the Entry Standard segment of the Frankfurt Stock Exchange. The Company, a member of the Frankfurt-based Angermayer, Brumm & Lange Group, made a public offering of 4 million new shares from a capital increase extending up to and including Wednesday, 8 December 2010.
Existing shareholders exercised their pre-emption rights to subscribe to 1,178,219 of the shares at a fixed price of EUR 10.00. This reflects 30 per cent of the entire capital increase. New investors subscribed to 2,821,781 shares in a price range of EUR 10.00 to EUR 12.00 using a book building procedure. As the shares were in high demand, the allocation was made at EUR 11.00. As a result, the Company received EUR 43 million in new funds. The first day of trading is planned for Tuesday, 14 December 2010. The lead Manager for the transaction is biw Bank fuer Investments und Wertpapiere AG, in cooperation with Silvia Quandt & Cie. AG.
'We were able to place the shares exclusively with institutional investors and family offices, predominantly in the English-speaking world including South Africa, and in the process, achieved a substantial oversubscription. The lively interest was also due to the fact that although ADC will be listed in Germany, meaning it satisfies international transparency requirements, the funds will be invested in areas outside of the large African stock exchanges. Investors therefore gain access to markets and opportunities that would normally not be open to them for investment,' stated Olaf Meier, Managing Director of ADC African Development Corporation.
Existing shareholders did not sell any shares and are subject to a sales restriction ('lock-up') until 30 June 2011. These shares cannot be sold on the stock exchange during this time. Following the capital increase, ADC has 7,646,150 shares outstanding and more than EUR 50 million in liquid assets, which is intended for the rapid acquisition of further banks and insurance companies as well as other financial-service sector companies in SSA. ADC's free float is around 52 per cent.
To accompany this ongoing growth of the Company and new investments, a changeover to the Deutsche Boerse Prime Standard segment is planned for the first half of 2011. This will match ADC's growth in operations with a move up to the highest capital market transparency requirements, thereby attracting new investor groups.
ADC African Development Corporation currently operates four subsidiaries in the so-called 'frontier markets' in Sub-Saharan Africa. ADC is thereby focussing on a region considered to be the last 'unknown territory' in the emerging markets, with economic growth among the highest in the world. The International Monetary Fund expects real gross domestic product in Sub-Saharan Africa to increase 4.9 per cent in the current year, and 5.5 per cent in 2011. Aside from commodities and the telecommunications industry, the most important growth sector is ADC's area of focus, the financial sector. In spite of stable annual growth rates of 8 per cent, this sector, which is so important for the successful functioning of an economy, still shows very considerable convergence potential.
ADC was established in September 2007 and quickly positioned itself as one of the leading investors for banks in the above-average growth markets of Sub-Saharan Africa. The Company's success is primarily due to its local management team, which follows international best practice principles to further develop banks and implements conventional international processes to increase their profitability. As the second international emerging market investor in the world, ADC was integrated into the insurance solution offered by the Multilateral Investment Guarantee Agency ('MIGA'), a member of the World Bank Group, primarily due to its strong operational approach and adherence to the highest ethical standards. The insurance offers protection against a variety of political risks, in particular the risk of radical political change.
The financial group currently consists of two banks in Equatorial Guinea and Zimbabwe, and two suppliers of electronic payment systems in Rwanda and South Africa. A bank investment was previously exited successfully in 2009, following further development of its operations. A tangible pipeline currently contains promising investment opportunities with a potential investment volume of approximately EUR 60 million, which means that the proceeds from the capital increase can be quickly used for business expansion. In addition to the current key focus on commercial & retail banking and banking IT, the proceeds from the IPO will also be used to expand the Company's insurance business, which is specialised in the non-life sector, in close partnership with another member of the World Bank Group, the International Finance Corporation, Washington D.C., USA ('IFC'). The Company aims to achieve a good double-digit annual return on invested capital in its subsidiaries.
++ About ADC
ADC is a financial services group focusing on the so-called 'frontier markets' in Sub-Saharan Africa. It uses an active management approach and has its own on-site team of investment specialists, Africa experts and top managers with strong banking backgrounds and extensive experience in emerging markets. ADC focuses on the highly profitable banking and insurance market. An operational management approach is used to align processes with international standards, thereby creating value for ADC and its investors.
| Language: |
| English |
| Company: | ADC African Development Corporation GmbH & Co. KGaA | |
| Grüneburgweg 18 | ||
| 60322 Frankfurt/Main | ||
| Deutschland | ||
| Phone: | +49 69 719 12 80 00 | |
| Fax: | +49 69 719 12 80 011 | |
| E-mail: | ||
| Internet: | ||
| ISIN: | DE000A1E8NW9 | |
| WKN: | A1E8NW |
106219 13.12.2010
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