Investec withdraws 10% share offer in Ninety One due to market conditions

Demerger and listing on track

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Joint CEO of Investec and CEO of Ninety One Hendrik du Toit
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Joint CEO of Investec and CEO of Ninety One Hendrik du Toit

Investec has announced it will not pursue the public offer of 10% of the shares of its rebranded funds business Ninety One as part of its IPO, citing the recent market volatility. 

It confirmed it will proceed with the proposed demerger and public listing of Ninety One, formerly Investec Asset Management, on 16 March.

In a statement, Investec said that "in light of the recent volatile market conditions, the boards of Investec have decided not to pursue the global offer of approximately 10% of the combined total issued share capital of Ninety One".

Fani Titi, joint CEO of Investec, said: "Market conditions have proved particularly challenging in the recent two weeks and, while we were encouraged by the strength and quality of investor engagement in relation to the global offer, we have decided to retain our shareholding in Ninety One.

"Importantly, the financial benefits of the demerger remain. Ninety One is an excellent company, with an exceptional management team, and we have great confidence in its prospects as an independently-listed firm."

Joint CEO of Investec and CEO of Ninety One Hendrik du Toit (pictured) added that the demerger is "progressing in line with the published timetable".

"Despite the recent market dislocation, we have been encouraged by the support from our shareholders and potential investors. We are confident in the resilience of our capital-light business model and its organically developed, specialist, active investment offerings," said du Toit.

On 2 March, Ninety One announced that its flotation would be priced at between 190p and 235p, valuing the firm at between £1.7bn and £2.2bn.