Pick n Pay Stores plans to list its low-cost Boxer division on the Johannesburg Stock Exchange by year-end, aiming to raise up to R8 billion (approximately US$452 million). This would make it the largest initial public offering (IPO) in Africa for 2024.
As part of a broader restructuring of South Africa’s third-largest grocery chain, Pick n Pay anticipates that the IPO will reach the higher end of its initial target range of R6 billion to R8 billion. The offering may include an over-allotment option capped at R500 million.
Sales in the Boxer division rose by 12% in the six months leading up to August 25, which could attract potential investors. CEO Sean Summers expressed cautious optimism about reducing trading losses in the main Pick n Pay business by as much as 50% for the year.
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Summers, who returned as CEO last year, is implementing a three-year turnaround plan that includes selling shares in Boxer. The company reported a 45% increase in its loss after tax for the first half of the year, totaling R827.4 million.
“The Boxer IPO is crucial to our strategy, and its impressive performance underscores its potential as a listed entity,” Summers stated.
Boxer operates three formats: Boxer Superstores, which provide essential groceries; Boxer Liquors; and Boxer Build. As of late August 2024, there are 300 Boxer Superstores, 159 Boxer Liquors, and 30 Boxer Build stores, with the total store count increasing by 12 over the past 26 weeks.
