Grace Ashiru
Transaction Capital’s subsidiary, WeBuyCars commenced trading on the JSE, marking the first of 10 anticipated listings this year.
Shares of WeBuyCars debuted on the market at R20 per share, surpassing the initial public offering price of R18.75 per share.
Another cannabis firm, Cilo Cybin Holdings, is set to be listed on the JSE on 12 April, providing a much-needed boost to the exchange, which has faced challenges in attracting new listings in recent years.
Coca-Cola Beverages Africa is set to make its highly anticipated debut on the stock market in 2024 after being put on hold for three years due to challenging market conditions. The plan is to have the stock trade on Euronext with a secondary listing on the JSE, offering investors an exciting opportunity to participate in this milestone.
Additionally, Pick n Pay Stores is considering spinning off its discount supermarket chain, Boxer. In a similar move, RCL Foods is planning to carve out its Rainbow Chicken business.
WeBuyCars aims to increase the monthly volume of traded vehicles from 14,000 to 23,000 within the next four to five years, as stated by CEO Faan van der Walt.
“We have seen substantial growth at WeBuyCars over an extended period,” he mentioned in an interview. “It certainly justifies a separate listing due to its size.”
R7.8 billion Market Cap
WeBuyCars and Transaction Capital announced on Tuesday that they have successfully raised R902.7 million in capital, in preparation for their upcoming listing on Thursday.
WeBuyCars successfully sold 40 million shares for R750 million, with its parent company Transaction Capital, an investment holding company, also offloading 8.145 million WeBuyCars shares for approximately R152.7 million through a meticulous book-building process.
On the listing date of 11 April, WeBuyCars reported a total of 417.2 million ordinary shares in issue, with a market capitalization of R7.8 billion at R18.75 per share.
Since its establishment as a family-owned business in 2001, WeBuyCars has emerged as South Africa’s premier pre-owned vehicle trader, boasting a substantial market share of 10% to 12%. The company facilitates the purchase and sale of approximately 13,500 vehicles each month.
