Capital Appreciation Limited. JSE: CTA

Capital Appreciation shares

Background of Capital Appreciation

  • Capital Appreciation Limited is a Special Purpose Acquisition Company (SPAC) which became the first SPAC to list on the main board of the Johannesburg Stock Exchange (JSE), in October 2015. Capital Appreciation shares are available to buy under the Non-Equity Investment Instrument sector. Capital Appreciation’s main purpose is to pursue the purchase of, and investment in, viable commercial enterprises with good growth potential.

  • The company’s founders include the Public Investment Corporation, one of the largest institutional asset managers in South Africa, which committed to investing at least R250 million. The Capital Appreciation Empowerment Trust is investing at least R50 million, while individual founders Michael Pimstein, Bradley Sacks, Michael Sacks and Alan Salomon are collectively investing at least R60 million. The group has also secured the buy in of wholly black-owned investment company, African Rainbow Capital, which has invested R50 million.

  • The SPAC process works by raising blind pool money from the public, for an unspecified merger. In accordance with the characteristics of a SPAC, all cash raised as part of the listing is held in an escrow account pending conclusion of a transaction. Cash and stock is used to acquire one or more businesses. If an acquisition is not made within two years, the money and accrued interest is returned to investors.

  • Capital Appreciation shares were listed at R1 per share when they debuted on the JSE. The live online stocks chart shows that Capital Appreciation share price has yet to take off as shareholders wait for a meaningful acquisition.

Capital Appreciation Shares Growth Driver

  • Subsequent to listing on the JSE, Capital Appreciation managed to raise R1 billion through private placement of shares for sale, a quarter of which came from the PIC. The company is yet to make an acquisition, but is reportedly eyeing several transactions within the services sector. The company has said that it will not necessarily be limited to a particular industry or geographic region within South Africa. Management has reportedly evaluated numerous potential acquisitions and is discussing propositions with certain vendors to buy stakes in target companies.

  • It is difficult to forecast which way the company is heading before any acquisitions are made, but shareholders are placing confidence in the extensive operational, commercial and financial experience of Capital Appreciation’s founders and directors. Capital Appreciation has assured investors that when evaluating acquisitions, the scalability and growth potential, as well as the company’s ability to add value to the acquisition, will be thoroughly assessed.

Capital Appreciation Group Investor Tip

  • Capital Appreciation is run by a highly experienced management team with a thorough knowledge of stock data and business. The company certainly has sufficient resources (in the form of cash, equity and debt) to make meaningful acquisitions, but has been purposefully cautious due to market volatility and the unstable economy.

  • Investors will therefore be throwing the dice slightly with the purchase of Capital Appreciation shares, but management seems to have adopted a good strategy of seeking the ‘right investment’ instead of any investment, and this could pay off for Capital Appreciation share price performance in the long run.

Capital Appreciation Major Shareholders

  • Sector

    Financials

  • Industry

    Asset Management

  • Sub industry

    Investment Companies

How to buy Capital Appreciation Group Shares

  • Capital Appreciation : How to buy Capital Appreciation Group Shares Online

    We have made it simple to buy JSE listed firm shares online. The easiest way to buy Capital Appreciation Holdings Group shares or stocks is to; start by submitting the ‘BUY THIS SHARE’ form. Next, one of our experienced and certified stock brokers will personally get in contact with you to discuss your custom stock request. Finally, a stock advisor will confirm the amount of shares you are looking to invest in Capital Appreciation Group and assist you with the setup and management of your stock portfolio account.

  • Here are the steps you must follow to Buy / Purchase Capital Appreciation Group shares with utmost confidence:

    1. Start by Filling in the BUY THIS SHARE form.
    2. Insert your name, email, telephone number and monthly remuneration.
    3. Then, Indicate the amount you are looking to invest in Capital Appreciation Group.
    4. Click the “ INVEST NOW” button
    5. Once we have received your info, a dedicated stock advisor will personally call you back to discuss your personal share request.
    6. Lastly, your newly appointed personal stock advisor will handle all account setups and reporting as stipulated by the financial services board of South Africa (FSB)
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Capital Appreciation
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