Boxer lists on the A2X
Boxer is the latest company to list on the A2X.
Boxer is following Pick n Pay’s example with a secondary listing on A2X.
Boxer began trading on the A2X on the same day that it was listed on the Main Board of the JSE – Thursday, 29 November 2024.
Trading since the listing date has been brisk, with 830,000 shares being traded for a value of roughly R53 million.
“The dual listing on the JSE and A2X signifies a significant step in Boxer’s journey. A2X reinforces our strategy to optimise shareholder value,” said Boxer CEO Marek Masojada
“With A2X’s lower-cost structure and competitive trading environment, Boxer shareholders will gain from both increased liquidity and trading options.”
“We are excited to welcome Boxer to A2X. Boxer’s strong brand and community-focused approach align with our mission to provide companies and investors with a cost-effective, alternative trading venue,” added A2X CEO Kevin Brady.
Boxer is a leader in the discount grocery sector, with roughly 68% of the market and a 4.2% share of the broader formal grocery market.
In its most recent financial year, annual turnover reached R37.4 billion and trading profit reached R2.1 billion.
Helping Pick n Pay
The listing of Boxer formed part of Pick n Pay’s two-step Recapitalisation Plan, which significantly boosted its balance sheet.
In its full-year results for the year that ended 25 February 2024, Pick n Pay’s profit dropped by 373% as it swung from a R1.17 billion profit in the prior year to a R3.2 billion net loss.
The group had even become technically insolvent for the first time in its listed history (a position that has now reversed).
The company’s net debt-to-EBITDA increased from 1.1 to 6.3 times, and the group breached all its debt covenants.
The group was in desperate need of cash and returning CEO Sean Summers initiated a two-step plan.
The first step was a rights offer in Pick n Pay in August. The rights offer was more than double oversubscribed and raised R4 billion.
The second step saw the listing of Boxer. Boxer shares valued at R8.5 billion were placed at the top end of the guide price, at R54 each.
Pick n Pay has also retained over 60% of Boxer.
“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,” said Pick n Pay CEO Sean Summers.
Notably, Boxer, which has now reached over R30 billion, is worth more than Pick n Pay, which has a market cap of around R23 billion.
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