Active first day for Arrowhead
Arrowhead Properties experienced a fair bit of activity on its first day of trade on Friday.
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At 1.05pm, the stock had experienced fairly decent volumes with 214,000 A unit shares traded and 1,024,000 B unit shares traded.
Arrowhead announced that it had successfully listed on the JSE Limited (JSE) in the Real Estate Holdings and Development sector of the main board under the share codes AWA and AWB.
Arrowhead listed on the exchange with an issue price of 600 cents per A unit and 338 cents per B unit, which sets Arrowhead's market capitalisation at close to R1 billion.
The company said that the first trades went through at 650 cents per A linked unit and 420 cents per B linked unit respectively. By 11am the price traded at 610c per A linked unit and 440 cents per B linked unit. More than 800,000 shares traded.
Gerald Leissner CEO of Arrowhead said: "We are proud to be making our debut on the JSE today and we welcome all shareholders. We have aggressive growth plans for the fund and we are excited to be the only property fund in the SA market offering quarterly distributions. We can immediately start to selectively assess various value-enhancing opportunities to grow the portfolio and deliver superior shareholder returns."
Arrowhead listed 84,839,675 A linked units and 84,839,675 B linked units. A linked units would cater for more risk averse investors and would earn 60 cents per unit per annum, or 50% of the income distributed per annum, whichever was the greater. B linked units would cater for those investors with a larger risk appetite and would earn the balance of the distributable income estimated to be 38.38 cents per unit. Distributions would be made quarterly.
At 2pm, Arrowhead A shares were trading at 608c and Arrowhead B shares were trading at 450c. The range for the A linked units was 601c to 650c, while the B linked units traded between 420c and 450c.