African Rainbow Capital Investments has decided to accelerate a review of its fee structure, which has raised many an eyebrow in the investment community.
After reaching R9.52 at the end of 2019, its intrinsic NAV reduced by 7.4% to R8.82, partly as a result of last October’s R750-million rights issue. That is still significantly higher than its current share price of around R3.80. What’s more, the new shares were priced at a discounted R2.75 each. It said the key drivers of the increase were twofold: net new investments made of R929-million and increased asset values amounting to R746-million.
It holds an effective 36% interest in TymeBank through its close to 50% stake in ARC Financial Services, which injected an additional R505-million into the digital bank during the reporting period.