IPO Sunstone Capital Limited B Shares

Details of the offer

Introducing Sunstone Capital Limited 

Sunstone Capital is a SARS approved Venture Capital Company (VCC) that makes use of section 12J to make their investments more tax efficient in order to enhance investor returns.

Sunstone aims to subscribe for qualifying shares in Qualifying Companies that seek to generate stable monthly rentals off the back of a fleet of vehicles managed by an experienced operator. Through the wealth of knowledge and industry specific experiences possessed by the Directors and FlexClub, the Company has identified unique opportunities that allow for rapid deployment of capital. These Qualifying Companies have a primary goal that the entails the provision of owners and users of movable assets with a low administrative cost rental alternative for their asset specific needs. The rental model enables the fleet operator to migrate from the conventional hire purchase finance agreements commonly used in the industry, which had resulted in high administrative costs and the cause of major operational inefficacies1.

 

Introducing Sunstone Capital Limited ‘’B’’ Ordinary shares

The Offer comprises an offer to the public to subscribe for 35 000 “B” Ordinary Shares at R1 050 per Share, each having 1 vote per share as contemplated in the MOI2.

The investment strategy adopted by the “B” Ordinary Share Portfolio entails the following: The acquisition strategy together with the investment objective is to acquire shares in Qualifying Companies that will acquire a movable asset portfolio with the intent of using discounts to purchase assets below market price and, as such, retaining as much value as possible3.

 

WHAT IS SECTION 12J?

Section 12J refers to a section in the South African Income Tax Act which provides a tax incentive for individuals, trusts and companies who invest in a SARS approved Venture Capital Company. Any investment amount can be claimed as a 100% deduction against taxable income in the year in which the investment is made.

 

12J KEY POINTS

1.       Investors that invest into a SARS approved section 12J company can claim a full tax deduction on their investment.

2.       This means that up to 45% can be claimed back from SARS within 8-10 months, reducing risk capital to 55% (assuming investors are taxed at the highest marginal tax rate).

3.       The fund uses that capital to invest into asset backed businesses which generate returns.

4.       Tax deduction is made permanent after an investment has been held for 5 years4.

 

 

 

 

 

Important dates

Opening date of offer

09h00 on Friday, 15 November 2019

Closing date of offer

23h59 on Thursday, 27 February 2020

 

 

                                                                                                                                                                                                                                                                                                         

 

 

It is important to note that if you subscribe for this offer, EasyEquities will remove the subscription amount from the Free Cash in your EasyEquities ZAR account and hold this amount for safekeeping in the bank account of the FWT Nominees until the closing date of the offer. Please note that the subscription amount will not earn interest from the date on which it is removed from the Free Cash your EasyEquities ZAR account. Please bear this in mind when subscribing for the offer in advance of the closing date of the offer.

 

Important notes:

 

The value of the shares applying for
ANY OTHER AMOUNT
R  

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