ICT service provider Ayo to list on JSE

13th December 2017 By: Schalk Burger - Creamer Media Senior Contributing Editor

Ayo Technology Solutions will list on the main board of the JSE on December 21.

The company provides information and communications technology (ICT) services to the healthcare industry, as well as information systems for hospitals, pharmacies and laboratories.

Ayo Technology Solutions, which has a key strategic relationship with UK-based ICT multinational BT, will list in the Computer Services sector of the JSE.

“In addition to being an equity holder in BT, Ayo Technology Solutions has entered into the BT Alliance Agreement, in terms of which Ayo will be one of BT’s strategic partners in South Africa,” Ayo stated in its prelisting statement on Wednesday.

Under the terms of the agreement, Ayo and BT will be entitled to market each other’s products and services in South Africa, on a resell basis or as part of a bundled solution. It is envisaged that several employees of BT may transfer, by written agreement, to Ayo to operationalise and empower the company with the skills and intellectual property required to fulfil awarded contracts.

Ayo’s listing is aimed at raising capital to fund the roll-out of the BT strategic relationship, Ayo’s acquisition pipeline, as well as to provide Ayo Technology’s management and employees an opportunity to acquire an equity stake in Ayo Technology post the listing through the Ayo Technology Incentive Scheme.

The company on Wednesday opened a private placement, which would close on Friday, to raise R4.3-billion through the issue of 99.78-million shares to invited investors.

Investment company African Equity Empowerment Investment’s shareholding in Ayo Technology Solutions will, as a result of the private placement, be reduced from 69.55% to about 49% on the listing date.

“Ayo Technology Solutions’ growth strategy will be enabled by the capital raised by the private placement. The capital raised, the strategic relationship with BT and the strong acquisition pipeline will enable Ayo to be one of the most empowered multidiscipline ICT groups with, a full suite of products and services that is able to deliver turnkey ICT solutions to any client,” the company stated.