Private schooling group sets JSE listing date

Pembury Group says it plans to list on the Alternative Exchange (AltX) of the Johannesburg Stock Exchange on 31 March 2017.

The board of directors of the Pembury Lifestyle Group (PL Group) on Thursday announced that a JSE-compliant and approved prospectus has been prepared and issued relating to its private placement for the subscription of PL Group ordinary shares.

PL Group intends to offer 100,000,000 shares at 100 cents each by way of a private placing and a preferential offer for subscription of 40,000,000 shares at 100 cents each, totalling 140,000,000 ordinary shares at an issue price of 100 cents per ordinary Share.

There will then be a subsequent listing of up to 353,000,000 ordinary no par-value shares at 100 cents each in PL Group on the Alternative Exchange (AltX) of the JSE in the Specialised Consumer Services Sector.

The closing date for the private placement is scheduled for 24 March 2017.

In November, Pembury said it had received approval from the JSE to proceed with an application to list on the AltX.

Read: Curro to list private university business in 2017

In 2014, Pembury Lifestyle Group launched PLG Schools which has since grown to seven campuses with 19 schools. Its schools offer a co-ed learning environment with a maximum of 25 learners per class, from Pre-Primary to Matric, with English as the primary language of instruction.

“The first step in this process is to list PLG Schools, which will include the underlying properties for each school site. This first step is important as it positions us for future growth and structures the company appropriately for the acquisition of additional properties for the roll out of school campuses,” said PL Group’s founder and CEO, Andrew McLachlan in November.

PLG Schools said it aims to bridge the financial gap between government school fees and the ‘elite’ independent school fees and brings the benefits of private education to many more families. Its fees range between R18,000 – R54,000 per annum.

PLG Schools currently operates in Gauteng and the North West Province. In 2017, the group will open three new campuses in Centurion, Roodepoort and Springs; taking the number of campuses to seven, with 19 schools.

The school will have 2,200 pupils by next year, up from 420 two years ago, and double its content in 2016.

Read: Curro eyes international growth with Botswana university stake

McLachlan said he expects to increase the number of campuses to 19 with approximately 55 schools by 2022, growing by at least three campuses per year.

In addition, PLG Schools has plans to expand into tertiary education with PLG Tech Colleges.

PLG Schools aims to raise around R140 million in external capital to fund the growth aspirations of the group, which include adding several new school campuses to its portfolio, as well as a property division in the future.

In the financial year ending 29 February 2016, PLG Schools generated revenue of over R19 million and EBITDA of R7.27 million. Revenue is derived from monthly fees, non-refundable registration fees, monthly aftercare fees, monthly boarding fees and other opportunities such as transport services.

Read: Another schools group to list on the JSE

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Private schooling group sets JSE listing date