Curro Holdings, an operator of private schools in South Africa, plans to raise R1.44bn ($124m) from debt markets and a rights issue as it seeks to develop new institutions and explore potential acquisitions.South Africa’s education system was ranked the fifth-worst among 144 countries in a survey by the World Economic Forum last year, increasing the attraction of private schooling for those that can afford it. The school pass rate for final-year students fell for the first time in five years in 2014 after changes to the curriculum system.
Shareholders will be offered the right to buy one share for every 11 they already own at R25 each, the Cape Town-based company said in a statement on Tuesday. The stock closed at R33.14 the previous day.Curro has achieved its prelisting objective of at least 40 campuses five years ahead of its original target of 2020, the company said. In 2015, Curro plans to invest approximately R600m on the expansion of existing campuses.
