Cell C Holdings has opened its offer for up to 173.4-million of its shares ahead of its listing on the JSE later this month.
In a prelisting statement on Thursday, the group said it planned to raise gross proceeds of up to R6.5bn in a private placement to selected qualifying investors.
It aims to sell up to 173.4-million shares and up to 9.52-million overallotment shares, collectively representing up to 53.8% of the company’s total issued share capital
The offer price ranges between R29.50 and R35.50 per share.
The offer opens today and will close on November 21, with admission to the JSE expected on November 27, it said.
The offer includes an allocation of up to 68-million ordinary shares, valued at about R2.4bn to a new empowerment ownership structure.
Business Day reported previously that as part of the steps to prepare for the listing, The Prepaid Company (TPC) was buying out Nedbank’s 7.53% stake and Lesaka’s 5.13% stake in Cell C.
TPC has taken on Nedbank’s debt claims against Cell C. These will then be converted into equity. The effect of this is a R1.301bn reduction in Cell C’s debt to R2.75bn.
Cell C will be listed on the JSE’s telecommunications services sub-sector. At the date of listing, Cell C group will comprise Cell C Holdings and its subsidiaries, including Cell C and Comm Equipment.
Cell C CEO Jorge Mendes said the decision to pursue a listing on the JSE marked a significant and exciting step in Cell C’s growth story.
“While Cell C is already owned by a listed entity and has operated within that framework, the separate listing of the company will enable the group to streamline its balance sheet, reinforce its growth strategy and strengthen its competitive positioning of business segments,” Mendes said.
Ahead of the much-anticipated IPO, the group has undergone restructuring to facilitate the separation of Cell C from Blue Label through the formation of the consolidated group for purposes of the listing.
With Mudiwa Gavaza
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