Pick n Pay raises R8.5bn in Boxer IPO

Source: Reuters/Siphiwe Sibeko

The IPO is the second and final step of CEO Sean Summers' two-step recapitalisation plan to raise much needed cash to lower Pick n Pay Group debt and fix its loss-making core Pick n Pay supermarkets business. It has already raised R4bn through a rights issue.

"Local and international investors have demonstrated extraordinary support for (Boxer's) equity story and growth trajectory, with the order book being multiple times oversubscribed at the top end of the offer price range," Boxer CEO Marek Masojada said.

The offer price range was between R42-54. The retailer sold 157.4 million shares.

Boxer formally announces its intention to list on JSE

11 Nov 2024

Based on a total of 457,407,408 shares in issue, assuming the overallotment option is exercised in full, the offer price implies a market capitalisation of R24.7bn, the retailer said.

An overallotment option grants the underwriter the right to sell more shares to provide price stability. In this case there are 9,259,259 overallotment shares representing about R500m although the retailer said there was no guarantee they would be sold.

Pick n Pay, the country's third biggest grocery retailer by market cap, will retain a 65.6% stake in Boxer.

Boxer's shares are scheduled to start trading on the main board of Johannesburg's stock exchange on 28 November with a secondary listing on the local alternative market.

Founded in 1977 as a small operator in towns like Nquthu and Ulundi in KwaZulu-Natal, Boxer has now grown to 489 stores across the country and Eswatini, with roughly a 68% market share of the discount grocery retail market.