New era for Cell C on the JSE

Cell C has officially listed on the Johannesburg Stock Exchange (JSE), marking the bourse’s fifth listing so far this year.

The mobile operator opened at a price of R26.50 on Thursday, 27 November, reaching a market capitalisation of R9 billion.

Prior to the listing, JSE Head of Primary Markets Maurice Madiba told Daily Investor that Cell C’s listing, which marks the bourse’s fifth this year, speaks to the strength of South Africa’s capital markets.

JSE CEO Leila Fourie congratulated Cell C ahead of its listing, saying it is not only a milestone for the company but an affirmation of the strength of South Africa’s capital markets.

Cell C CEO Jorge Mendes said this listing has been “24 years in the making”, saying it is the beginning of a new journey for the mobile operator.

Cell C is currently majority owned by Blu Label Unlimited, which holds a 59.66% stake in the mobile operator through its subsidiary, The Prepaid Company (TPC).

Therefore, Cell C’s listing marks the firm’s first day trading as an independent business after years under Blu Label’s ownership structure.

Mendes said the listing was a “natural evolution” in the company’s 24-year history, with the company now able to access capital markets for the first time.

The listing also forms part of Blu Label’s broader strategic restructuring of Cell C, aimed at giving the business improved access to equity capital markets and enhancing liquidity for existing and prospective shareholders.

It also enables Cell C to operate with a clearer standalone structure as it enters its next phase of operational and financial repositioning.

Bloomberg reported that, on the day of its listing, Cell C opened flat in its debut on the JSE. The mobile operators’ stock opened at R26.50, matching the final offer price, and rose to R27.30 by 9:44, giving the company a market cap of R9.3 billion.

Blu Label initially eyed an offer price of between R29.50 and R35.50 per share, which implied a market cap of between R10 billion and R12 billion.