Media

Infrasors to list on AltX as building demand booms

Business Report

July 16, 2007
By Roy Cokayne

Pretoria - Infrasors Holdings, an empowered maker and distributor of building and industrial materials, is set to list on the JSE's AltX at the end of this month.

Chief executive Le Roux Roets said on Friday that the company would list with a market capitalisation in excess of R1 billion, one of the bigger listings on AltX.

Infrasors plans to raise R385 million through the listing. It believes this will give it the capital to substantially lift throughput, optimally exploit resources and raise its profile, leading to new opportunities.

It forecasts earnings a share of 37.5c in the year to February 2008, to increase to 46c in 2009. Revenue is forecast to rise to R245 million in the current year. It expects to pay a maiden dividend of 12c a share in February.

Popo Molefe, the former North West premier and chief executive of Lereko Investment Holdings, Infrasors' anchor black economic empowerment partner, said that with the approach of the soccer World Cup and general demand for infrastructure, Lereko and Infrasors had established a long-term strategic relationship to supply much-needed resources.

Roets said Infrasors had a full order book, as well as increasing production capacity, to meet growing demand.

Lereko is 100 percent black owned and 33 percent held by women. Former environmental affairs and tourism minister Mohammed Valli Moosa is its executive chairman.

The Infrasors group includes Delf Sand, Lyttelton Dolomite and Infrabric, trading as K&F Bricks, which owns and operates several dolomite crushing, milling and bagging, sand washing and drying, and brick making plants.

Roets said this enabled the group to supply dolomite aggregate, sand-based products and cement bricks to the building industry and other customers, especially in Gauteng, where more than 40 percent of building activity spend took place.

The company had a well-established customer base, including blue chip construction and industrial companies, and mines. An increase in the base price of building inputs such as industrial sand had benefited Delf Sand, which contributes 35 percent of Infrasors' profit, Roets added.

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