Take note: Stadio BEE shares are promising a great performance

By: Ujuh Correspondent

The Black Economic Empowerment (BEE) shares of private education group, Stadio, appear set to become one of the top performing BEE shares of their time.

Issued towards the end of last year, Stadio BEE shares were priced at R2.96 per share reflecting a huge discount to Stadio’s market value. Stadio’s share price has touched R9.19 which reflected excitement that followed the listing of the operation bundled out of Curro. The excitement has since dissipated bringing the share price to live around R4.00 per share over the past four months.

Stadio was bundled out of private education group Curro to give it space to grow within its focus of private higher education. That left the high performing Curro to focus on primary and secondary education.

The formation and separate listing of Stadio caused excitement because of the track record of the people behind the operation. It is backed by PSG which propelled Curro into one of the top performing shares of recent times. And Curro founding CEO, Chris van der Merwe, was moved to lead Stadio.

The listing

Stadio was listed on the main board of the JSE in October 2017 and raised from that listing R840 million. This was followed by the issuing of BEE shares in December which raised about R200 million.

Half of the R200 million came Brimstone Investment Corporation to form part of a broader B-BBEE formation which fetched about 10% stake in Stadio.

The other half of the R200 million came from from retail black investors who endured a minimum subscription amount per black person of R50 000. The minimum subscription amount was set at R50 000 per employee.

The Satdio BEE equity formation is locked in for seven years.  Holders if the BEE shares can only sell these shares only to black persons, verified and approved by Stadio via an arrangement with PSG Wealth.

The operation

Money raised from the Stadio listing would be used to expand the group’s portfolio of post school institutions. Some new acquisitions have already been made living the portfolio with five registered higher education institutions and about 30 000 students and 51 accredited programmes.

The institutions have diverse offerings including undergraduate, higher certificates, diplomas, and degrees) and post graduate programmes (honours, masters and doctorate). The institutions and their specialisation are as follows:

AFDA: It has nine accredited programmes, ranging from higher certificates to masters degrees, primarily focused on the film, television and live performance industry.

Embury Institute for Higher Education: It specialises in teacher education, specifically for pre-school and primary school teachers (Foundation and Intermediate Phases). Embury intends to launch new faculties of Commerce, Health Sciences, Arts and IT in due course.

LISOF Fashion Design School & Retail Education Institute: It is focused on fashion, design and retail. LISOF was the first private higher education institution in South Africa to launch a BCOM in Fashion.

Milpark Education: It is distant higher education institution focused on management, commerce, banking, financial planning and insurance and public management educational course.

Southern Business School: It provides distance learning education focused in leadership, management, business and commerce, law and policing.

Latest financial results shows a huge potential of this operation. Revenue for the six months ended June stood at R296 million up from R33 million, reflecting a string of acquisition bedded over the past twelve months. And the group achieved pre-tax profit of R53 million.


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