Pick n Pay’s Boxer listing price set

Pick n Pay informed qualifying investors that Boxer share orders submitted below R54.00 per share will likely not receive any shares.

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.

On 11 November 2024, Pick n Pay announced that it aims to raise between R8.0 billion and R8.5 billion through Boxer’s initial public offering.

Boxer will offer up to 202.4 million shares, around 40% of its total issued share capital, at a 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.

Earlier this week, Jean Pierre Verster, founder and CEO of Protea Capital Management, explained that the offer is open to a small group of investors.

“It is based on section 96 of the Companies Act. Financial services providers and individuals who can invest at least R1 million can apply,” he said.

“Depending on how many people apply, Pick n Pay and its advisors will decide on the Boxer share price.”

He said if there is a lot of interest, the Boxer share price would be at the highest end of the range, hence R54 per share.

“At this stage, we do not know what the price is, but I am pretty sure it will be at R54 per share, the top end of the range,” he said.

Verster was correct. On Wednesday, Pick n Pay informed qualifying investors that orders submitted below R54.00 per share risk receiving no allocation.

“The order book is multiple times covered at the top end of the offer price range,” Pick n Pay said in a SENS announcement.

It said an offer price at the top end would result in the issue of up to 157,407,408 shares, representing up to 34.4% of Boxer’s issued share capital.

It added that the bookbuild process will close at 12:00 on Friday, 22 November 2024.