SilverBridge trades at 75% premium on opening day
SilverBridge Holdings, which listed on the AltX today, reached an intra-day high of R3,50 before settling back to R3,40 on the opening day.
This occurred amid thin volumes against a listing price of R2 - the group has 32,5 million shares in issue. This gives SilverBridge market capitalisation of R110,5 million.
The company listed through acquiring the Synergy Holdings cash shell on the JSE and moving to the AltX. It listed to allow it to begin putting together a synergistic and complementary group of financial services software companies and to capitalise on the opportunities in the financial services sector in South Africa and the rest of Africa. The listing also provides a vehicle with which to attract the right black empowerment partner that can add value to the group.
"We are delighted with the results achieved on listing day," says SilverBridge Holdings executive director Freda du Toit. "We expect trade volumes to increase in the next few days and beyond. Given the metrics of SilverBridge, key players in the market understand that our share is attractively priced."
SilverBridge, whose initial asset is SDT Financial Software Solutions, expects revenue of R38,3 million for the current financial year, with operating margin of R7,5 million and net profit of R3,7 million, including secondary company tax on a special dividend.
For 2007, it is forecasting revenue of R53 million, operating profit of R9,3 million and net profit of R7 million. For 2008, it is forecasting revenue of R63,7 million, operating profit of R12,1 million and net profit of R8,9 million.
SilverBridge has R17 million cash in hand, and is confident to trade on a forward P:E of 9,4, and predicts earnings per share of 21,4 cents going forward.
"We have a very healthy business," says Du Toit. "We are highly cash-generative, half of our business is annuity-based, and we have a controlled acquisition strategy to ensure continued, sustained, healthy growth."
