Balwin Properties debuts on the JSE

Balwin Properties debuts on the JSE, as the group gears up for growth.

Balwin Properties, the homebuilder focusing on sectional-title residential estates, debuted on the JSE on Thursday, as the group gears up for growth.

Its first trade opened at R11, giving it a sizeable market capitalisation of R5.2 billion. By 11.55am, the share price stood at R10.20.

Balwin CEO Stephen Brookes said he was excited about today's listing.

"It marks the next chapter in our growth path and paves the way for us to accelerate our delivery of around 17 000 homes in the next 8 years. In addition, the capital raised through the listing will allow us to acquire and secure land for future development in order to maintain our development pipeline," Brookes said.

"To this end, we are currently in discussions to acquire an additional land parcel in the Kyalami node on which a further 15 000 sectional-title residential units could be developed," he said.

Balwin generates profits through the development and sale of large-scale residential estates averaging between 500 and 1,000 units.

The company would re-invest 70% of after tax profits back into the business to support superior net asset value uplift and would distribute the remaining 30% of profits to shareholders, providing a strong projected immediate dividend yield of 3.5%.

Last Friday, Balwin announced that it had successfully placed 178 million shares at R9.88 per share, raising R1.76 billion.