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Sygnia is pleased to announce that it has listed on the Main Board of the Johannesburg Stock Exchange.

 

The company made 31 224 834 shares, representing 22.8% of the company’s market capitalisation, available as part of a Private Placing at a price of R8.40 per ordinary share. Subscriptions of 19.8 times the Placing size were received, and the company successfully raised R262 288 606.

 

“We were very humbled by the level of interest and support expressed for Sygnia and its plans. Many of our potential investors liked our low-cost, market disruptor business model,” said Magda Wierzycka, Sygnia’s CEO. “This is a great validation of our core belief that South African savers are ready for low cost financial services products and index-tracking funds in the face of low real returns, an uncertain future and the underperformance by many active asset managers”.

 

Sygnia’s Chairman and Professor of Economics and Director of the Development Policy Research Unit at UCT, Professor Haroon Bhorat, sees Sygnia as a triple threat. “As a firm in the financial industry which has grown rapidly yet organically, constantly innovating, targeted at lowering costs to consumers and finally, led by a woman – Sygnia must surely be viewed as one of the corporate success stories of the decade.”

 

Sygnia has a reputation for innovation within the financial services industry. In 2006 Sygnia shook up the multi-manager industry by launching customised multi-management and investment administration platforms with full cost transparency. In 2013 the company launched its range of low cost savings products linked to index-tracking, charging just 0.40% per annum for a combination of a retirement annuity and an investment product. This has shocked the industry which is used to charging well in excess of 1% for similar products. Future strategies include the launch of robo-advisors and umbrella funds designed to meet the requirements of South Africa’s evolving regulatory landscape.

 

“We are very excited about our future. Given the level of support expressed by investors in our company we plan to aim higher and move faster”, says Wierzycka.