Consol IPO may raise up to $415m
South African glass bottle maker Consol aims to raise up to $415-million via an initial public offering (IPO), it said on Monday, returning the firm to public markets after more than a decade in the hands of private equity groups
The flotation, pencilled in for April 30, comes amid growing confidence among investors and business leaders that President Cyril Ramaphosa will follow through on promises to revive the economy and bring policy certainty.
Consol, bought out for R6.1-billion in 2007 by private equity investors led by Brait, said it would sell 761-million shares, or 34.2% stake, at between R1.50 and R6.50 each, raising between R1.1-billion and R5-billion ($415-million) and values the company at as much as R14.3-billion.
Including the greenshoe option, or an over-allotment, of as much as 114.1-million shares to underwriters, the IPO could raise as much as R5.7-billion, Consol said.
Brait's stock has been hammered by concerns about its biggest shareholder Christo Wiese and the performance of its British retailer New Look. The South African tycoon is tallying up losses from a share price crash in Steinhoff, a retailer in the throes of an accounting scandal.
Consol, which counts blue chips such as Anheuser-Busch InBev, Diageo and Heineken among its customers, said the listing would allow shareholders to cash in on their 11-year investment in the company and raise money to pay down debt, which includes R4.7-billion in loans from shareholders.
The company, which also operates in Kenya and Nigeria, reported a R1.6-billion ($134-million) in core earnings in the year to June 30, 2017 on revenue of R6.1-billion.
Goldman Sachs and BofA Merrill Lynch are working on the listing, along with South African banks RMB and Standard Bank, who will market the deal to domestic investors.
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation