On February 17, 2017, Fairfax Africa Holdings Corporation completed its initial public offering of subordinate voting shares for gross proceeds of approximately US$56 million. Concurrent with the closing of the IPO, Fairfax Africa issued multiple voting shares on a private placement basis, in the amount of approximately US$227 million to certain affiliates of Fairfax Financial Holdings Limited. This investment, together with the contribution to Fairfax Africa by Fairfax Financial of its indirect interest in AFGRI Proprietary Limited in connection with the AFGRI transaction described below, resulted in an aggregate investment by Fairfax Financial of US$300 million in multiple voting shares. Also, concurrent with the closing of the IPO, Fairfax Africa completed its acquisition of an indirect 42.2% interest (including the indirect interest formerly held by Fairfax Financial) in AFGRI, a leading agricultural services and food processing company based in South Africa. Further, concurrent with the closing of the IPO, Fairfax Africa issued to certain cornerstone investors subordinate voting shares, on a private placement basis, for aggregate gross proceeds of approximately US$144 million.  As a result, the combined gross proceeds was approximately US$500 million.