Dubai fintech Optasia seeks 6.3B rand in South African IPO, share sale

Microfinance solutions platform Optasia is set to raise a total of 6.3 billion South African rand through an IPO and a share sale to support its expansion.

The Dubai-based company, formerly known as Channel VAS DMCC, announced its intention to list on the Johannesburg Stock Exchange and raise approximately 1.3 billion rand. Existing shareholders will also conduct a secondary share sale to raise at least 5 billion rand by way of a private placement.

The IPO will include an overallotment option of up to 15% of the size of the offering. The proceeds will be used to support the company's organic growth and potential acquisitions.

Optasia said it will not receive any proceeds from the secondary share sale.

Moelis & Company UK LLP serves as an independent financial adviser to Optasia and its selling investors, while Standard Bank of South Africa Ltd., Morgan Stanley & Co. International PLC and Investec Bank Ltd. are advising Optasia on the offering and admission. Investec acts as the brookrunner.

Optasia uses AI to provide micro financing and airtime credit solutions in 38 countries. It said it processes more than 32 million loan transactions daily and has approximately 121 million monthly active users.

As of Oct. 7, US$1 was equivalent to 17.19 South African rand.