Boxer listing details revealed
Boxer, which is currently wholly owned by Pick n Pay, has formally announced its intention to list on the main board of the Johannesburg Stock Exchange (JSE) on 28 November 2024.
As part of the initial public offering (IPO), Pick n Pay aims to raise between R8.0 billion and R8.5 billion.
Boxer will offer up to 202.4 million shares, around 40% of its total issued share capital, at a share price of between R42 and R54 per share.
The share price implies a total market capitalisation of between R21.1 billion and R24.7 billion for Boxer.
Pick n Pay expects to retain a majority stake in Boxer of approximately 60% to 65% post the initial public offering.
Boxer’s IPO is the second and final step of Pick n Pay’s two-step recapitalisation plan to strengthen its balance sheet.
In May 2024, Pick n Pay revealed that it was technically insolvent, as its liabilities were higher than its assets.
To address this problem, Pick n Pay announced its two-step recapitalisation plan to strengthen its balance sheet.
Step one was completed three months ago, with its successful R4 billion rights offer helping the Pick n Pay Group return to a positive equity position of R2.9 billion.
Step two, the Boxer IPO, is now underway. Pick n Pay will use the proceeds to settle its outstanding debt and reinvest in the core Pick n Pay supermarket business.
Boxer Superstores is a leading discount grocery retailer in South Africa with an annual turnover of R37.4 billion, a trading profit of R2.1 billion, and 489 stores.
Boxer has a 47-year history and track record of consistent growth since Pick n Pay acquired the business in 2002 under the leadership of then-CEO Sean Summers.
The company has a market share of 68% of the discount grocery retail market and an estimated market share of 4.2% of the formal grocery market.
Boxer’s turnover grew at a CAGR of 18.6% between FY2022 and FY2024, with like-for-like growth of 7.7%.
Boxer has added an average of a new store every week for the last three financial years and has experienced a 14% CAGR in store numbers over the same period.
It expects to add 65 new stores by the end of this financial year. The medium-to-long-term aim is to double its store footprint by opening 60 to 70 stores yearly for the next six to seven years.
Participation by qualified investors in the offer for Boxer shares will open today, 11 November 2024, at 09:00 and close at 12:00 on Friday, 22 November 2024.
The publication date of the final offer price and final number of offer shares will be released on Monday, 25 November, and Boxer will officially list on 28 November 2024.
