SOUTH AFRICA – South African food producer Premier Group has announced plans to list in the Johannesburg Stock Exchange (JSE) with the intention of raising as much as ZAR3.6bn (US$197.6M).
As part of the listing, Premier Group will be valued at ZAR6.9bn (US$378M) with the shares priced at ZAR53.82 (US$2.9) including an overallotment of ZAR100m (US$5.5M).
The decision comes after the confectionery-to-pasta maker abandoned the intention to make its stock market enter the Johannesburg Stock Exchange (JSE) in December due to market conditions in the country
Just Food reports that earlier, the company had revealed that the initial public offering (IPO) was suspended owing to “South Africa’s capital markets were not “conducive to supporting a successful IPO” and hence resolved not to proceed with the offer.
However, Premier Group, which posted revenue of ZAR14.5bn (US$793M) in the year to 31 March 2022, is aiming to complete the share sale by 24 March.
In addition, during the period, the group posted adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of ZAR1.5bn (US$82M), up 36%, and earnings before interest and taxes (EBIT) of ZAR877M (US$480M), an increase of 28%.
Brait said in a JSE filing that it expects to retain 47.1% of the shares in Premier Group following the IPO, based on the full allotment, and will then “focus on options to expedite the unbundling of its remaining shares” before December 2024.
Earlier, Bait revealed that irrevocable agreements have been reached with Titan Premier Investments, who agreed to purchase 36.2% of the offer shares, and an unnamed institutional investor, who agreed to purchase 2.4%.
Kobus Gertenbach, Premier’s CEO had said that the transition into the listed environment is expected to support Premier’s efforts to drive its organic and acquisitive growth strategy and strengthen its market position across all business areas
The Premier Group owns the Millbake brand of bread, flour, and baking mixes. Other food lines include CIM in biscuits, Blue Ribbon bread, Champion and Rascals in confectionery, and Polana in pasta.
It also supplies pasta, rice, and beverages via its Mozambique subsidiary Companhia Industrial da Matol
In 2021, it expanded its confectionary portfolio with the acquisition of Mister Sweet, the maker of the Manhattan and Super C brands.