Purple Group recently announced a rights offer!

In the stock market, companies can raise capital by issuing additional shares to existing shareholders. Recently, EasyEquities announced its intention to raise R150 million from its shareholders. 

On Tuesday, Purple Group, the parent company of EasyEquities (which is 70% owned by Purple Group and 30% owned by Sanlam), GT247.com, RISE, and Emperor Asset Management, announced that it would raise its portion of this offer (R105 million) via a rights offer to its existing shareholders, while Sanlam would subscribe for its portion (the remaining R45 million).

Charles Savage, CEO of Purple Group, stated in an interview with BizNews that the purpose of the offer is to finance the group's growth aspirations and long-term value for the participants. 


The Purple Group rights offer will be partially underwritten, which means that the underwriter has agreed to take up any rights offer shares which have not been taken up by the existing shareholders who have already committed to follow their rights or the other existing shareholders who have not yet followed their rights. You can check out the detailed SENS announcement here.

How to participate 🤔

Shares that will be eligible for this offer are those bought before or on Tuesday, 23 May 2022. The last day to trade (buy or sell) the Letters of Allocation (LOAs), for qualifying shareholders will be Tuesday, 6 June 2023.

Those who wish to convert their LOAs to ordinary shares will be able to do so according to the salient dates to be communicated to shareholders.

Shareholders are advised that they will need to deposit cash into their EasyEquities account in order to convert the full number of LOAs allocated.  For subscription price, please refer to the SENS announcement.

To learn more about rights offers, you can click here.

Any opinions, news, research, reports, analyses, prices, or other information contained within this research is provided by an employee of EasyEquities an authorised FSP (FSP no 22588) as general market commentary and does not constitute investment advice for the purposes of the Financial Advisory and Intermediary Services Act, 2002. First World Trader (Pty) Ltd t/a EasyEquities (“EasyEquities”) does not warrant the correctness, accuracy, timeliness, reliability or completeness of any information (i) contained within this research and (ii) received from third party data providers. You must rely solely upon your own judgment in all aspects of your investment and/or trading decisions and all investments and/or trades are made at your own risk. EasyEquities (including any of their employees) will not accept any liability for any direct or indirect loss or damage, including without limitation, any loss of profit, which may arise directly or indirectly from use of or reliance on the market commentary. The content contained within is subject to change at any time without notice.

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