Mesh.trade co-founder and MD Connie Bloem.
Mesh.trade, a digital capital markets platform for the issuance, trade, and management of smart financial asset, which three months ago launched the first tokenised corporate bond in Africa, has announced the capital raise was a success, with particularly encouraging uptake from retail investors,
The company said a statement that the R100 million raised in a matter of a few weeks was testament to the impact of Mesh.trade’s ability to connect entrepreneurs. Of the total capital raise, 17% of the notes were held by retail investors.
Mesh.trade co-founder and managing director Connie Bloem said, “If we exclude what was raised by institutional investors that represent ultra high-net worth individuals, 24% of notes are held by non-institutional investors, of which 72% are individuals and 28% are companies.
“Essentially, it proves that if businesses needing to raise capital put the right message in front of their investor audience, they will see a spirited response. Deep financial expertise and blockchain technology have enabled us to do just that.”
Seeking a candidate for its first tokenised corporate bond, Mesh.trade said it sought out an entrepreneurial business with a compelling value proposition that would resonate with its target audience. Die MOS Inisiatief, which is a fast-growing network of Afrikaans-medium schools powered by the latest technology and virtual teaching capabilities, was selected.
A prospectus was drawn up and approved, resulting in the launch of Die MOS’s 10-year prime +2% floating rate bond. The R100m target was underwritten by education, arts and culture trust TAKKE. A two-week book-building window with a minimum investment of R5 000 attracted a diverse pool of investors, with the youngest being just a few days old, it said.
The MOS bond was a public offer to subscribe for 20 000 tokenised notes issued natively as smart assets on Mesh.trade. The MOS bond is fully underwritten and guaranteed by the Trust vir Afrikaanse Kuns, Kultuur en Erfenis, part of the Dagbreek Trust family.
Blom said the success of the subscription spelt good news for businesses that needed to raise capital to execute their growth strategies, while also allowing investors – especially retail investors who traditionally can’t access instruments directly – the opportunity to directly own and trade in smart assets.
BUSINESS REPORT