Issuing just over 56 million shares at 456c (or BWP4.00) to raise just under R256 million, Wilderness Holdings intends to list on the JSE's Africa Board on 8 April 2010.  It will be joining Trustco there, which was the first pan-African business to list on this Board.

Browsing through the Group's prospectus, Wilderness has been around for 26 years, but operating in two seperate legal entities for various legal reasons.  Part of the listing is the restructuring of the business into a single holding company that should drop provide increased streamlining of operating and better flexibility.

The Group is really a pan-African tourism company with vast operations spread throughout southern Africa.  It is vertically integrated from safari consulting to air and road transport to camp, lodge and safari exploration backed up with finance and asset management services for the Group.  Critically, over 80% of its tourism volumes coming from over 1000 travel specialists and agents aligned with it, but none of them contributing more than 3%.

Wilderness highlights its current business with the following impressive statistics:

• owns 53 destinations comprising 930 beds (nightly count) in 7 countries;
• markets and/or manages a further 17 destinations comprising 280 beds (nightly count) in 7 countries;
• operates 49 aircraft (owning 33 of these);
• operates 6 journey specialist businesses in 6 countries employing 249 people; and
• employs approximately 2 700 people.

Most impressive in the prospectus is not the Group's reach, nor its diversity, nor its obviously dominant position in its market with high barriers to entry...rather, it is the honesty of the following statement on the first page, second paragraph of the 310 page document:  "Making money is fundamental to the Business and since inception Wilderness has been cash positive..."

As a potential shareholder, investor and analyst, this honesty about the business is refreshing.  So often directors and businessmen use long analogies coupled with cliché phrases like "creating value for all stakeholders", "creating returns in excess of the cost of capital", "unlocking value", "generating positive yields", etc etc...when all they mean is that they are trying to make the greatest possible amount money legally and sustainably.

One up for Wilderness's honesty in my books.

The Group operates in a sensitive environment with both large political risk throughout the countries and territories it operates, and obvious ecological risk.  To balance these risks the Group employs a social economist "...whose sole responsibility is to gain insight into the needs and expectations of community partners..." and has initiatives to both study and preserve the environment.

A lot of listed companies talk about "going green" (a certain green bank comes to mind), but I'm yet to see one of them actually do anything active (i.e. get dirty as opposed just sending money).  The environment is really the marketing pull that creates the demand for Wilderness's services as its destinations are the prestine wilds of Africa.  Hence, it is no surprise (but refreshing) to see it's one pillar of business relate to playing an active role in preserving the environment.

All this talk aside, though, the Wilderness's business has some interesting numbers:

• Forecast February 2010 year end HEPS of 22.24c putting the share placement at an expensive forward earnings multiple of 18 times;
• These HEPS are expected to grow only marginally to 22.50c in 2011;
• But 2011 revenues are expected to grow by 17%; and
• August 2009's pro-forma Group balance sheet showed a D:E geared up to 0.53 times with a strong asset base.

Overall, Wilderness is an extremely intruiging business and one that is very different from anything else listed on the JSE at this point.  Its dual listing on the Botswanan stock Exchange (BSE) and the JSE's Africa Board should provide good visibility for this local board and I hope to soon see more pan-African businesses taking the leap and listing.