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New JSE Listing: Stadio Holdings Ltd
4 October 2017 | Daniel Nel
 


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Stadio Holdings (JSE:SDO) is a South African investment company the focuses on post-school education. The company’s current investments include Embury, AFDA and Southern Business School. The company’s vision is to create a holding company for various higher educational institutions that will operate under their own brands and offer various qualifications.

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On 28 February 2017, Curro (JSE:COH) announced its intention to unbundle its entire interest in Stadio and to list Stadio on the main board of the JSE. Curro first invested in tertiary education in 2013 by acquiring Embury Institute for Higher Education, a fully accredited private higher education institution that specialises in teacher education.

Stadio Holdings raised R840 million ahead of its listing yesterday, the company plans to do more acquisitions in the future, and is consistently looking for reputable higher education institutions that are aligned with its vision. The company announced that it will raise another R640 million by way of a rights offer, and it plans to issue 256 million shares at a subscription price of R2.50 per share and a subscription ratio of 57.19647 shares for every 100 Stadio shares held. The company plans to use the capital to settle the bridge funding provided by Curro Holdings. The company also plans to use part of the funding for acquisitions that are in various stages of negotiation.

Stadio, similar to Curro, looks to invest in the future of quality private education for South Africans. The need for affordable quality education is increasing worldwide, and South Africa is lagging the world averages. Global population and competitiveness in the labour markets are increasing. For young working people to enter the job market, they must have tertiary education to compete for quality and professional jobs.

An investor in Stadio is thus likely to share the view that the demand for quality education in the future will increase. To meet this anticipated demand, the company is following a growth path instead of an earnings path.

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daniel

Daniel Nel
Analyst and Securities Trader 

Daniel is a full-time analyst and securities trader, and is responsible for equities research across industries. Although he grew up in a small town in the Klein Karoo, Daniel has always been interested in both locally and internationally traded companies. Daniel has been actively investing and trading on the JSE and other global exchanges since starting his Bcom Investments Degree at the University of Stellenbosch, which he completed in 2014. During his studies, Daniel worked as an intern at Kruger International in Johannesburg in 2015, gaining valuable experience from Hein and Mia Kruger. He is currently a CFA candidate.


Disclaimer:
The information contained in this article is for informational purposes only and must not be regarded as a prospectus for any security, financial product or transaction. It is neither to be construed as financial advice nor to be regarded as a definitive analysis of any financial issue. Investors should consider this research/article as only a single factor in making their investment decision. We recommend you consult a financial planner/advisor to take into account your particular investment objectives, financial situation and individual needs.

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