Pick n Pay’s hugely successful discount retailer Boxer has published its pre-listing statement as it prepares to list on the Johannesburg Stock Exchange (JSE).<\/p>\n\n\n\n
The group will list on 28 November 2024 and plans to have a secondary listing on the A2X.<\/p>\n\n\n\n
As part of the initial public offering (IPO), the Pick n Pay Group hopes to raise between R8.0 billion and R8.5 billion<\/strong> through an offer of up to 202.4 million Boxer shares\u2014around 40% of its total issued share capital\u2014at a share price of between R42 and R54 per share.<\/p>\n\n\n\n This would give Boxer an estimated market capitalisation of between R21.1 billion and R24.7 billion<\/strong>. <\/p>\n\n\n\n Pick n Pay expects to retain a majority stake in Boxer of approximately 60% to 65% post-IPO.<\/p>\n\n\n\n Boxer’s IPO is the second and final step of the two-step recapitalisation plan by Pick n Pay, which has been struggling with losses and store closures in South Africa.<\/p>\n\n\n\n The first step of the plan was a rights offer in August, which was oversubscribed.<\/p>\n\n\n\n The rights offer, which sought to raise R4 billion, was 106% oversubscribed, with total subscriptions reaching over R8 billion.<\/p>\n\n\n\n 98.7% of shareholders followed their rights, and the group received R4.3 billion in excess applications.<\/p>\n\n\n\n The Boxer listing is the next big step.<\/p>\n\n\n\n Boxer Superstores is the pre-eminent discount grocery retailer in South Africa with an annual turnover of R37.4 billion and trading profit of R2.1 billion (FY2024) and a store estate of 489 (at August 2024).<\/p>\n\n\n\n Boxer has a 47-year history and track record of consistent growth since Pick n Pay\u2019s acquisition of the business in 2002 under the leadership of then-CEO Sean Summers, when it had just 35 stores and annual sales of R800 million.<\/p>\n\n\n\n Its \u2018soft discounter\u2019 proposition in the South African market has secured a share of approximately 68% of the discount grocery retail market and an estimated market share of 4.2% of the formal grocery market, more than double that of its closest competitor, estimated at 1.8%.<\/p>\n\n\n\n Boxer’s turnover grew at a CAGR of 18.6% between FY2022 and FY2024, with like-for-like growth of 7.7%.<\/p>\n\n\n\n The brand has, on average, added a new store every week for the last 3 financial years and has experienced a 14% CAGR in\u202fstore numbers over the same period. By the end of this financial year (FY25), it expects to add 65 new stores. <\/p>\n\n\n\n The medium-to-long-term aim is to double its store footprint by opening 60 to 70 stores a year for the next six to seven years.<\/p>\n\n\n\n Pick n Pay CEO Sean Summers said the Boxer IPO will increase the retail store’s profile and visibility, providing it with access to a large pool of capital for growth. <\/p>\n\n\n\n “The initial capital raised from the listing will mean Pick n Pay will be debt-free, with a strong balance sheet and a significantly reduced interest bill, and in a position to accelerate its turnaround, driving long-term sustainable growth for all our shareholders,” he said.<\/p>\n\n\n\n The Boxer listing will go a long way in helping Pick n Pay reverse its financial struggles.<\/p>\n\n\n\n The group posted a R827.4 million loss for the interim period of 26 weeks ending 25 August 2024\u2014extending losses by 45% compared to the same period last year. Boxer’s performance in the group results stands out as one of the big successes, in contrast to the traditional Pick n Pay brand.<\/p>\n\n\n\n Participation by qualified investors in the offer for Boxer shares will open on Monday, 11 November 2024, at 09h00 and close at 12h00 on Friday, 22 November 2024. <\/p>\n\n\n\n The publication date of the final offer price and final number of offer shares will be released on Monday, 25 November, and Boxer will officially list on 28 November 2024.<\/p>\n\n\n\n
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