Pick n Pay to List Boxer Chain in Africa’s Largest IPO This Year
TLDR
- Pick n Pay to list low-cost Boxer business on JSE by year-end, aiming for $452 million IPO in 2024.
- Boxer sales increase by 12% in fiscal year first half, supporting Pick n Pay's investor attraction efforts.
- CEO Sean Summers leads broader turnaround strategy with Boxer listing; Pick n Pay shares up 38% year-to-date.
Pick n Pay Stores said it will list its low-cost Boxer business on the Johannesburg Stock Exchange by year-end, aiming to raise up to 8 billion rand ($452 million) in what could be Africa's largest IPO of 2024.
With an overallotment option, the offering is expected to reach the upper end of the 6-8 billion rand range, as stated by the company on Monday. The Boxer listing is part of a broader turnaround strategy under CEO Sean Summers, who rejoined last year.
Sales at Boxer rose 12% in the first half of the fiscal year, aiding Pick n Pay’s effort to attract investors. Pick n Pay shares have risen 38% year-to-date, outperforming other stocks on the FTSE/JSE Personal Care, Drug, and Grocery Stores Index. The company will retain a controlling stake in Boxer post-listing, expected by November.
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Key Takeaways
The planned Boxer IPO reflects Pick n Pay’s strategic focus on strengthening its financial footing amid ongoing challenges in the South African retail sector. Acquired by Pick n Pay 22 years ago, Boxer has expanded to 500 stores and now employs 30,000 staff, half of which were added in the last seven years. Although Pick n Pay reported a 45% increase in after-tax losses to 827.4 million rand in the first half, Summers anticipates reducing these trading losses by 50% in the core Pick n Pay unit for the full year. The success of the Boxer listing could drive additional capital to sustain the company's turnaround, setting a critical foundation for recovery in South Africa’s competitive retail landscape.
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