WeBuyCars debuts on Johannesburg Stock Exchange after $416m IPO
TLDR
- WeBuyCars had a successful debut on the Johannesburg Stock Exchange, trading above its IPO price at 20.50 rand.
- The company aims to increase its market share in South Africa to 23% by 2028 and boost monthly car sales from 14,000 to 22,000.
- Expansion plans include new branches and buying pods in key regions like Rustenburg, Bloemfontein, and East London.
Transaction Capital’s WeBuyCars saw a successful debut on the Johannesburg Stock Exchange, indicating a potential uptick in market activity.
The used-car firm opened above its initial public offering price, with shares trading at 20.50 rand, signaling investor interest. WeBuyCars, commanding a 10% to 12% market share in South Africa, aims for 23% by 2028 and plans to increase monthly car sales from 14,000 to 22,000.
With expansion plans including new branches and buying pods, the company anticipates growth in key regions like Rustenburg, Bloemfontein, and East London.
Key Takeaways
WeBuyCars' listing marks the second on the JSE in 2024, with others like Pick n Pay, discount grocer Boxer, and food producer Rainbow Chicken considering listings. WeBuyCars was spun off from Transaction Capital to unlock value, providing investors with direct access to the secondhand car market. Transaction Capital plans to use the proceeds to settle holding company debt, showcasing a strategic move to streamline operations and optimize capital allocation.
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