Dis-Chem reveals listing date on the JSE
Pharmacy group, Dis-Chem, says it will list on the Johannesburg Stock Exchange (JSE), in the food and drug retailers sector, on 18 November, 2016.
The group said that the offer price range per share for the initial price offering will be between R16.25 – R20.25.
The company will offer up to 238,405,268 shares with the percentage of issued share capital at 27.5%.
The offer will comprise an offer for subscription by the company of new shares. Net proceeds received from the offer will be used for the repurchase of shares from the existing shareholders, the repayment of existing indebtedness; and general corporate purposes, Dis-Chem said.
By way of comparison, Clicks, which has 511 standalone, including 400 pharmacies this week reported revenue of R25.53 billion.
The group’s share price traded at R121.51 in the morning session on Friday, giving it a market cap of approximately R30 billion.
Dis-Chem, meanwhile, said it has more than doubled its store base since 2010 and tripled since 2008. It currently has 101 stores in South Africa and two partner stores in Namibia after adding 30 stores over the past three financial years.
The group added that it has already agreed lease terms for 29 new stores since the financial year ended February 2016, comprising three stores which were opened during the six months ended 31 August 2016, a further eight stores to be opened during the six months ending 28 February 2017 and at least 18 stores expected to open during the financial year ending 28 February 2018.
Dis-Chem, through its wholly-owned subsidiary CJ Distribution, also has a wholesale business serving third party pharmacy retailers and Dis-Chem’s own retail pharmacies.
Over time, Dis-Chem said it expects to expand CJ Distribution’s operations to serve both wholesalers and a wider range of retailers.
In the 2016 financial year, Dis-Chem generated revenue of R15.5 billion and EBITDA of R1.1 billion. The Retail Business and CJ Distribution accounted for approximately 90% and 10%, respectively, of Dis-Chem’s EBITDA excluding inter-group amounts.
Dis-Chem said that the JSE has granted it a listing of up to 866,545,598 ordinary shares in the Food and Drug Retailers sector of the main board under the share code: DCP.
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