On a particularly blue Monday, Ninety One - previously known as Investec Asset Management - began trading on the JSE and London after splitting from the Investec Group.
The share debuted on the JSE at R55, and briefly peaked at R60 before slumping to R49.90 in mid-morning trade. Along with other global markets, the JSE suffered large losses on Monday. The bourse lost more than 10% of its value in a morning's trading. Financials took a particularly hard hit, with Old Mutual down almost 20%.
Investec CEO, Fani Titi, hailed the listing as a "significant step" in the company's evolution.
"The rationale behind the demerger was to simplify and focus both Investec and Ninety One. As Investec, we remain fully focused on achieving sustainable, long-term growth for the benefit of our clients, shareholders and stakeholders," said Titi in a statement. Investec, which is now focused on banking, will hold 15% of Ninety One.
Investec shareholders received one Ninety One share for every two Investec shares they held. These shareholders control 55% of the group, while management and directors own 20% via a company called Forty Two Point.
Investec Asset Management was first formed in 1991 (hence the new name) and manages around R2.5 trillion in assets, primarily in South Africa and the UK.
- Compiled by Sibongile Khumalo
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