Full Analysis
Special Situations
N91 LN: Steep Valuations Dampen Upside in Asset Management IPO
After years of share price underperformance by Parent Investec Plc (INVP LN) against the FTSE 100 Index (-26.5% in the last year vs. -16.4% and -40.5% vs. -4.1% in five years, respectively), the management has decided to IPO its best-performing segment into an independent global asset management company, Ninety One Plc (N91 LN). Despite the separation being a positive move for the company, the current IPO price band shows very little upside on our Bull case - read on for our thoughts.

  • Very Steep Valuation in IPO Pricing Band Between 190p and 235p / IPO Proceeds Go to Parent INVP LN
  • Veteran Investec Asset Management CEO (29 Years in Position) Will Lead N91 Post-IPO
  • Dividend Payout In-Line with Peers / CEO's Investment Firm Holds 20% of N91 in Committed Bid
  • Recent European Asset Management Separations Have Underperformed the Broader Index
  • IPO Expected March 16, 2020 / Potential Stake Spinoff in 180+ Days (Lock-Up Period) / N91 LN on Watchlist
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