Enaleni share ends 20% up on debut on JSEÆs AltX
Charlotte Mathews
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Classic Business Day Transcript: Enaleni Pharmaceuticals on Alt-X
CAPE TOWN ù Black empowerment pharmaceutical company Enaleni Pharmaceuticals made a successful debut on the JSE Securities Exchange SAÆs AltX board on Friday, ending the day 20% above the R1 at which shares were placed with selected investors before the listing.
Enaleni manufactures pharmaceutical products under contract and also sells consumer brands like Just For Baby and Sloans and vitality products like Bioharmony and Muscle Science.
The shares traded between R1,19 and R1,25 in 37 deals totalling 264 589 shares.
EnaleniÆs private placement of 10-million shares at R1 was more than two times oversubscribed.
It also raised R20m by placing shares with mostly black empowerment partners.
Enaleni CEO Trevor Edwards said yesterday that the first day of listing went really well and the shares achieved the price he had expected. The share-price performance reflected great demand for a relatively small company.
ôEverybody acknowledges that there is a place for another listed pharmaceutical company.
ôAs we are a leading black empowerment company, with the health charter imminent, investors see a lot of upside in the shares,ö he said.
Institutions hold about 30% of EnaleniÆs shares and black empowerment investors hold between 35% and 40%.
Edwards said the most important aspect of the companyÆs listing was that it made it possible to bring in new black empowerment investors after the companyÆs aggressive acquisition drive in the past couple of years had diluted its empowerment shareholding.
It has also implemented a share option scheme and assisted senior black executives and team members to buy shares.
The group is committed to bringing its black empowerment shareholding up to 51% within the next year to eighteen months.
JSE business development manager Noah Greenhill said at the listing on Friday that the fact that the listing was twice oversubscribed supported the decision of the AltX advisory committee to give it the go ahead.
ôWe also welcome a company with strong empowerment credentials,ö Greenhill said.
Edwards said the first day of listing marked the start of a journey for the company. It would use the funds raised to continue its aggressive acquisition drive, for which it has the backing of its major shareholders.
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