Pick n Pay has released details of the long-awaited initial public offering (IPO) of Boxer shares, with the price range for the offer of up to 40.3% of the grocer expected to be in a range of R42 to R54 per share.
Boxer will list on the JSE on November 28.
This move marks the second phase of Pick n Pay’s two-step recapitalisation strategy, aimed at consolidating its balance sheet and unlocking Boxer’s value as an independent growth engine within SA’s retail sector.
Pick n Pay aims to raise between R8bn and R8.5bn through the Boxer IPO by offering up to 202.4-million shares, about 40% of Boxer’s total issued share capital, at a share price of between R42 and R54 per share, it said in a statement on Monday.
The listing values Boxer at between R21.1bn and R24.7bn. Pick n Pay said it expected to retain a majority stake in Boxer, holding 60%-65% after the IPO.
Founded in 1977, Boxer was acquired by Pick n Pay in 2002 and has since expanded to 489 stores locally and Eswatini. For the 2024 financial year, Boxer reported an annual turnover of R37.4bn and a trading profit of R2.1bn. It added one new store per week on average over the past three years, with plans to open 65 new stores by the end of the 2025 financial year.
“Having been there when we bought Boxer, it is very exciting to see the business come full circle. The Boxer IPO will increase their profile and visibility, providing Boxer with access to a large pool of capital for growth,” Pick n Pay CEO Sean Summers said.
“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.”
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