
Subscribe & Follow
Advertise your job vacancies
Jobs
- Used Gear and Rentals Assistant Cape Town
- Print Room Manager Cape Town
- Product Development Manager Cape Town
- Field Agent Witbank
- Sales Consultant Mbombela
- Designer / DTP Operator Cape Town
- Sales Representative Cape Town
- Office Administrator Johannesburg
- Sales Consultant Pietermaritzburg
- Sales Consultant Paarl
Boxer IPO in Johannesburg could raise close to R8bn for Pick n Pay
South African retailer Pick n Pay, which is listing its discount grocery chain Boxer in Johannesburg through an initial public offering, said on Monday, 28 October 2024, that the base size of the IPO would be towards the upper end of its guidance.

Source: Reuters/Siphiwe Sibeko
Pick n Pay previously said proceeds from the IPO could be between R6bn and R8bn ($339m and $452m).
The retailer said in a statement that the Boxer IPO would include an overallotment option, which was not expected to exceed R500m and would be settled through the issuance of new shares.
An overallotment option grants the underwriter the right to sell more shares than originally planned if demand proves higher than expected. It provides price stability.
The IPO is part of Pick n Pay's two-step recapitalisation plan for much needed cash to lower its debt and fix its loss-making core Pick n Pay supermarkets business.
The group also wants Boxer to be accorded a market value which appropriately reflects its "superior" growth and return on invested capital.
"We've been able to obtain unsecured committed term debt and working capital facilities for the Boxer business post the IPO" from funding partners, group chief finical officer Lerena Olivier told investors.
Boxer said it has an expected gross drawn term debt of up to 850 million rand and about 2 billion rand of working capital facility.
Pick n Pay will retain a controlling stake in Boxer, Olivier added.
The company targets a dividend pay-out ratio of 40% of Boxer group headline earnings, it said.
Boxer, with 489 stores, is South Africa's fastest growing discount grocery chain, with about 68% market share of the discount grocery retail market.
As part of its strategy to grow, Boxer is actively pursuing store expansion, including rollouts to untapped areas, developing its suite of value-added services and expanding its supply chain with additional distribution centres where necessary to support new stores, it said.
For its 2025 financial year, Boxer forecasts turnover growth of about 10%-12%, and mid-teens growth in the next three to five years. It aims to double turnover within five years, the retailer added.
In the 26 weeks ended Aug. 25, turnover rose by 12% to R19.8bn, it said, while its trading profit increased by 11.8% to R809m.
Source: Reuters

Reuters, the news and media division of Thomson Reuters, is the world's largest multimedia news provider, reaching billions of people worldwide every day.
Go to: https://www.reuters.com/Related
New Bok jersey to feature Pick n Pay logo 3 days Pick n Pay Liquor transforms recycled juice packs into wine box stands 19 Mar 2025 FNB's eBucks expansion with Pick n Pay set to revolutionise grocery shopping in SA 18 Mar 2025 Pick n Pay introduces locally grown Sassy Apples variety 6 Mar 2025 Garden Walk sod-turning event marks the start of a landmark retail development in Hartenbos 3 Mar 2025 Pick n Pay and FNB boost rewards: Earn up to 30% back with expanded partnership 27 Feb 2025
