South Africa's Curro raises $62 mln to fund new schools

May 11, 2015 10:51 AM

JOHANNESBURG (Reuters) - South Africa's private school firm Curro Holding's said on Monday it has raised 740 million rand ($62 million) in a fully-subscribed rights offer to pay for new schools.

There has been surging demand for private schools from many middle class parents.

Public education in Africa's most advanced economy was ranked among the worst in a survey by the World Economic Forum last year.

South African spends more per capita on education than any other African country but its public schools are frequently criticized for poor standards of teaching, lack of equipment and overcrowding, leading to low exam pass rates.

The private school firm, which runs about 40 schools, was under scrutiny in January over allegations of racially segregating classrooms at one of its schools but the company denied the accusations.

Shares in the company, which are up 26 percent so far this year, fell 0.56 percent at 35.50 rand by 1016 GMT.

($1 = 11.9880 rand)