Boxer's initial public offering (IPO) has been well supported by both local and international investors with the order book being multiple times oversubscribed at the top end of the offer price range.
The offer closed on November 22 and 157.4-million subscription shares, representing an aggregate amount of R8.5bn at a subscription price of R54 apiece have been allocated to selected qualifying investors.
The offer comprised an offer for subscription of up 202.38-million shares — 190.47-million subscription shares and up to 11.9-million overallotment shares — with a proposed pricing range of between R42 to R54 per share.
Based on a total of 457.4-million shares in issue, assuming the overallotment option is exercised in full, the offer price implies a market capitalisation of R24.7bn and the offer shares will represent 34.4% of the company's total issued shares, Boxer said on Monday.
Pick n Pay will hold the balance of 300-million shares, or 65.6% of the total issued share capital of Boxer.
“Local and international investors have demonstrated extraordinary support for the company's equity story and growth trajectory, with the order book being multiple times oversubscribed at the top end of the offer price range,” CEO Marek Masojada said.
Masojada said the board was confident that the initial shareholder register struck a balance between local and international shareholders, long-term investors and liquidity providers, including through the participation of local stockbrokers.
“The JSE listing will give Boxer a platform from which to pursue its strategy, as it will elevate the Boxer brand, enhance its access to capital to sustain growth, instil public transparency and market discipline and enhance its profile with key stakeholders,” he added.
Founded in 1977, Boxer’s outlets are strategically located at taxi ranks and rural shopping malls — the heartland of the vast budget consumer base. With an aggressive store rollout plan, Boxer is stepping into the ring with Shoprite, hoping to snatch a bigger slice of the grocery market pie.
With Tiisetso Motsoeneng
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