Goldman Sachs Sees IPOs on South Africa Private-Equity Exits
Goldman Sachs Group Inc., which was the top underwriter of initial public offerings last year, expects new listings in South Africa to jump for the first time in three years as private-equity buyers sell investments.
“There could be a new wave of listings because of private equity portfolio exits,” Colin Coleman, head of Goldman Sachs for sub-Saharan Africa, said in a Jan. 17 interview. Coleman declined to say which companies might go public other than Alexander Forbes Ltd., the retirement-fund administrator that’s already announced plans for an IPO in the second half of 2014.
Last year, 12 companies went public on the Johannesburg stock exchange, the same as 2012 and down from 16 in 2011, JSE Ltd. data shows. Retailer Edcon Holdings (Pty) Ltd., acquired in 2007 by Bain Capital Partners LLC for $2.5 billion, may consider a listing, according to analysts including Chris Gilmour at Absa Asset Management Private Clients.
Coleman declined to comment on a potential listing for Edcon. Alexander Forbes, bought by private equity investors, including Actis LLP and Ethos Private Equity Ltd., for 8.2 billion rand ($757 million) in 2007, has hired Deutsche Bank AG and Rand Merchant Bank to advise on an IPO.
Emerging-market initial share sales will gain speed this year with economic conditions “steadying” and the reopening of mainland China exchanges in 2014, Ernst & Young LLP said in a report last month. That will result in at least 50 IPOs in the first quarter, it said, with technology, real estate and financial companies to dominate this year’s listings.