By Lehlohonolo Lehana.
Retail group Pick n Pay has on Monday, published its pre-listing statement as it prepares to list on the Johannesburg Stock Exchange (JSE).
The group will list on 28 November 2024 and plans to have a secondary listing on the A2X.
As part of the initial public offering (IPO), the Pick n Pay Group hopes to raise between R8.0 billion and R8.5 billion through an offer of up to 202.4 million Boxer shares—around 40% of its total issued share capital—at a share price of between R42 and R54 per share.
This would give Boxer an estimated market capitalisation of between R21.1 billion and R24.7 billion.
Pick n Pay expects to retain a majority stake in Boxer of approximately 60% to 65% post-IPO.
Boxer’s IPO is the second and final step of the two-step recapitalisation plan by Pick n Pay, which has been struggling with losses and store closures in South Africa.
Pick n Pay CEO Sean Summers said the Boxer IPO will increase the retail store’s profile and visibility, providing it with access to a large pool of capital for growth.
“The initial capital raised from the listing will mean Pick n Pay will be debt-free, with a strong balance sheet and a significantly reduced interest bill, and in a position to accelerate its turnaround, driving long-term sustainable growth for all our shareholders,” he said.
The Boxer listing will go a long way in helping Pick n Pay reverse its financial struggles.
The group posted a R827.4 million loss for the interim period of 26 weeks ending 25 August 2024—extending losses by 45% compared to the same period last year. Boxer’s performance in the group results stands out as one of the big successes, in contrast to the traditional Pick n Pay brand.
Participation by qualified investors in the offer for Boxer shares will open on Monday, 11 November 2024, at 09h00 and close at 12h00 on Friday, 22 November 2024.