Altvest Capital JSE IPO | Democratizing Investment in SA

Altvest Capital is set to democratize capital markets with its landmark listing on the JSE, as detailed in Business Live.

Everyday South Africans will have access to high-quality, equity-like investment opportunities previously reserved for the wealthy elite. Altvest Capital is proceeding with its IPO on the JSE. The offer opens on September 13, with the listing scheduled for October 14.

This move marks a significant milestone in the company’s mission to democratise access to private equity and alternative investments for everyday South Africans. As Altvest Capital takes this bold step into a broader public market, it is determined to make investing more inclusive, transparent and accessible for all. Altvest Capital’s vision is simple, but transformative: to offer retail investors access to high-quality, equity-like investment opportunities in SMEs and alternative asset classes that were previously reserved for institutional investors and the wealthy elite.

Creating inclusive investment opportunities

This listing will include a range of hybrid financial instruments, giving investors a diverse set of choices tailored to different risk appetites and investment goals. The offer encompasses Ordinary Shares, A Shares, B Shares and C Shares, each with distinct characteristics designed to appeal to a wide variety of investors.

“We’ve designed this IPO to be as inclusive as possible,” says Akshay Karan, Altvest’s chief investment officer. “We believe that wealth should not be concentrated in the hands of a few.

This listing is about broadening access to growth opportunities in the alternative investment space and providing an entry point for South Africans who are looking to diversify their portfolios.”

A unique investment offering

Altvest’s offering caters to a broad spectrum of investors, from seasoned professional to newcomers. The IPO will offer:

• Ordinary shares: For investors looking for long-term growth in a well-diversified, innovative investment company. View the Altvest investor deck.
• A shares: Linked to Altvest’s investment in Umganu Lodge, a luxury lodge adjacent to the Kruger National Park, providing a direct economic interest in this high-end hospitality asset. View the Umganu investor deck.
• B shares: Tied to Altvest’s stake in the Bambanani Family Group, a unique investment opportunity in the family restaurant and entertainment sector, which is on an aggressive expansion trajectory. View the Bambanani investor deck.
• C shares: Offering exposure to the Altvest Credit Opportunities Fund (ACOF), which provides much-needed debt funding to underbanked SMEs in SA. This class of shares is designed for investors looking to balance financial returns with social impact. View the ACOF investor deck.

How to access more information

For potential investors and stakeholders interested in learning more, Altvest has made several key documents available for review. These resources will provide detailed insights into the listing, the investment opportunities and the company’s strategic vision.

• The registered prospectus: This detailed prospectus, approved by the JSE and registered

with the Companies and Intellectual Property Commission {CIPC), offers an in-depth analysis of Altvest Capital’s business model, financial performance and growth prospects. Investors can access the full prospectus here.

• Abridged prospectus: For those seeking a quick yet comprehensive overview ofthe listing, the abridged prospectus offers a concise analysis, summarising the key details of the IPO and investment opportunities. Access the abridged prospectus here.
• Investor decks: Altvest has created detailed investor presentations for both the company and each of the hybrid instruments being offered in this IPO. These decks provide a visual and easy-to-digest summary of the investment case for Altvest Capital, Umganu Lodge (A

Shares), Bambanani Family Group (B Shares), and the Altvest Credit Opportunities Fund (C Shares). You can access the investor decks here.

Addressing systemic barriers in capital markets

As Altvest moves forward with this listing, it is not only offering a unique investment opportunity, but also challenging systemic inequalities that have persisted in the financial sector. The lack of access to sellside research and coverage for smaller companies like itself is a significant issue that disproportionately affects black-owned businesses and start-ups. Historically, smaller companies have struggled to raise capital because of systemic barriers that favour large institutional investors and high­ net-worth individuals. We’re flipping that model on its head Warren Wheatley, founder and CEO of Altvest “Our IPO is a direct challenge to the status quo,” says Warren Wheatley, founder and CEO of Altvest.

“Historically, smaller companies have struggled to raise capital because of systemic barriers that favour large institutional investors and high-net-worth individuals. We’re flipping that model on its head by giving ordinary South Africans the tools and the access they need to participate in these high-potential investments.”

A call to investors. This IPO represents more than just a financial opportunity –  it’s a chance to be part of a movement that seeks to democratise access to capital and create a more inclusive financial ecosystem. Altvest’s JSE listing is poised to change the way South Africans think about investing. It invites you to explore its prospectus and investor decks to learn more about how you can be part of this transformative journey. Investors are able to participate in the IPO by placing their orders here. Altvest has partnered with EasyEquities to bring this opportunity set to all South Africans.

Question 1          (Marks: 70)

Competitive intelligence may be defined as the process of systematically scanning the business environment and identifying and assessing potential opportunities and threats (Louw & Venter, 2019). Altvest want to improve their market share in South Africa and is considering acquiring Lula, a business funding competitor, to do so. As a strategic consultant, you are tasked to advise Altvest.

Your answer should be 1 000 -1100 words.

Your answer should contain the following points:

• Provide a brief introduction to strategic decision-making and macro-environmental analysis.
• Complete a Cl cycle on Altvest’s consideration of adding pork to their investment options.
• In conjunction with the Cl cycle, a macro-environmental analysis (PESTEL analysis) for Altvest’s on the South African market will be conducted.
• Compare the outcomes of a SWOT analysis for both Altvest current investment portfolio and the SWOT analysis of Altvest after acquiring Lula, irrespectively.
• Conclude whether it is in Altvest’s interest to add Lula to their investment options. Provide reasons for your answer.

Question 2       (Marks: 20)

Strategic decisions are usually made quickly to not lose out on fleeting opportunities in the turbulent business environment. Your report to Altvest had to be written under immense time­ pressure and as a consultant, you are exposed to several risks. You are required to include in your report a “disclaimer” of sorts, informing Altvest of all the constraints and limitation you faced during the writing of your report. You are required to conduct research beyond the scope of the prescribed material to answer this question.

Your answer should be 300-400 words.

Your answer should contain the following points:

• Declare any/all limitations and disadvantages of the analysis tools used in Question 1 of your report.
• Outline any challenges faced during the writing of the report that may influence the objectivity and validity of the report.

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Management Assignment Answers: Expert Answers on Above Management Questions

Strategic decision making requires a complete analysis of the business environment which can be done using strategic tools like PESTEL and SWOT.
CI Cycle on Altvest considering the acquisition of Lula
The first state is planning where by the objective should be to grow market share through acquisition. Collection includes gathering sufficient data on the market condition of Lula, customer types and its competitive positioning in the market. Analysis phase includes an assessment of a perfect fit between the mission of Altvest and the acquisition firm. The dissemination phase includes the distribution of information to leadership for decision making purposes, and finally the feedback includes an assessment of the outcomes post acquisition.
PESTEL analysis
The political condition indicates strong financial regulations in the South African market whereas the economic conditions indicate high unemployment and economic volatility. The social trend indicates financial literacy gap and increasing demand for inclusive finance whereas the technological trend suggests the growth of fintech and digital platforms. There are good opportunities available for grain investment and the legal conditions suggest that proper compliance with JSE regulations is essential.
SWOT comparison:
The current strength of Altvest indicates that the company has innovative hybrid offerings and its weakness is limited scale. Opportunities available are the good potential whereas the threat is from established competitors. After the acquisition of Lula, the strength would be expanded customer base, whereas the weakness would be integration cost. The opportunities would be to acquire the market leadership in SME funding and the threat would be competitive retaliation. 

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