transaction capital Used car business WeBuyCars has started trading on the JSE, becoming the first of 10 companies to list this year.
WeBuyCars shares opened at R20 per share, above the initial public offering price of R18.75 per share.
Another listing of cannabis company Cilo Cybin Holdings is also scheduled for April 12, in a much-needed boost for the JSE, which has struggled to attract listings in recent years.
One of the most anticipated products is Coca-Cola Beverage Africa, expected in late 2024. It has been frozen for three years due to unfavorable market conditions and plans to trade its shares on Euronext and have a secondary listing on the JSE. .
Additionally, Pick 'n Pay Stores plans to spin off discount supermarket chain Boxer, and RCL Foods intends to carve out its Rainbow Chicken business.
CEO Fern van der Walt said WeBuyCars aims to increase its car trading volume from around 14,000 cars per month to around 23,000 cars within four to five years.
“We have historically experienced a long period of rapid growth within WeBuyCars,” he said in an interview. “It's definitely big enough to deserve a separate list.”
Market capitalization R7.8 billion
WeBuyCars and Transaction Capital announced on Tuesday that they had raised R902.7 million ahead of Thursday's listing.
WeBuyCars sold 40 million shares for R750 million and its parent company, investment holding company Transaction Capital, sold 8.145 million WeBuyCars shares for approximately R152.7 million following a bookbuilding process.
According to WeBuyCars, the final number of ordinary shares outstanding as of April 11, the listing date, was R417.2 million, at a price of R18.75 per share, giving WeBuyCars a market capitalization of R7.8 billion.
Read: Court torpedoes Naspers’ R1.4bn WeBuyCars acquisition
WeBuyCars has grown from a family-run business founded in 2001 to become South Africa's leading used car trader with a market share of 10% to 12%. We buy and sell approximately 13,500 vehicles every month. — Hleko Siwele and Roni Prinsloo, (c) 2024 Bloomberg LP, Nqobile Dludla, (c) 2024 Reuters
