Boxer officially lists on the JSE
Boxer has officially listed on the JSE, giving Pick n Pay a multi-billion rand shot in the arm.
The listing will offer investors direct access to the soft discounter that targets South Africa’s high-growth value retail market.
This is the first listing of a soft discount retailer in South Africa and one of the most anticipated listings in nearly a decade.
Boxer has grown from 35 stores and a turnover of R800 million—when it was acquired by Pick n Pay in 2002—to 500 stores across the country and an annual turnover of R40 billion.
The listing allows Boxer to access local and international markets, supporting its plan to double its store footprint and grow its market share. Boxer has roughly 68% of the discount grocery retail market.
Boxer’s high sales density, low-cost operating model, and relatively light asset base allow it to generate high returns on investment. For the 52 weeks ended 25 February 2024, the return on invested capital was 26.5%.
“The value retail sector has the largest number of customers and is the fastest-growing segment, despite limited spending power,” said Boxer CEO Marek Masojada.
“We have high brand awareness and preference within this customer segment as our unrelenting focus on unbeatable value, quality, and service resonates with the communities where we trade.”
“Our deep understanding of our customers and their needs has been the foundation of our highly efficient operating model, which prioritises the investment of cost savings and operational efficiencies into lower prices and deeper value for customers.”
“The listing is an incredible milestone for our business, recognising the team’s hard work over the years. We have a very focused strategy, which we have been executing for a number of years now, and we believe we are well-positioned to increase our penetration in the market in the coming years.”
Pick n Pay CEO Sean Summers highlighted the achievements of the discount retailer to date.
“I feel an extraordinary sense of pride in what they have grown to become. We saw the potential in Boxer over 22 years ago when we first bought the company, and I have no doubt it will grow as a formidable contender in the retail sector. It’s come full circle,” said Summers.
The Boxer listing also completes Pick n Pay’s two-step Recapitalisation Plan, significantly boosting its balance sheet.
The first step was a R4 billion rights offer in August 2024, which was more than double oversubscribed, while the Boxer listing was multiple times oversubscribed.
Boxer hares valued at R8.5 billion were placed at the top end of the guide price, at R54 each. Pick n Pay will thus continue to hold more than 60% of Boxer.
“This was well executed and highly successful, with tremendous shareholder support at the top-end of the pricing range for Boxer,” said Summers.
“Retaining a +60% stake in Boxer secures an investment in a highly attractive and valuable growth engine while raising the capital necessary to settle our long-term debt and invest in Pick n Pay’s core supermarket business.”
The capital raised will convert interest costs to interest earnings as the business strengthens its balance sheet and holds surplus cash reserves.
It will also provide the necessary funds for the Pick n Pay turnaround plan, including investments in new stores, store refurbishments, range optimisation, technology, innovation, and staff training and development.
“Our plan is a multi-faceted and multi-year strategy. While there is still much to do, the significant progress achieved thus far is testament to the strength of our vision and the commitment of our teams.
“I am confident that they will continue to deliver with the same focus and dedication to strengthen the underlying performance of our Pick n Pay business.”
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