South African food company Libstar Holdings has raised ZAR3bn (US$238.6m) from a public offering of shares after revitalising a listing originally slated for last year.
Libstar, whose businesses include bakery, snacks and confectionery, sold ZAR1.5bn through a share placement priced at ZAR12.50 each, and another ZAR1.5bn offered by its shareholders.
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Settlement is scheduled for tomorrow (9 May) when the stock will list on the Johannesburg exchange, according to a company statement.
When Libstar announced the IPO was back on the table in April, the company said private-equity fund APEF Pacific Mauritius, or Abraaj Group, bought a 71% controlling interest in 2014, adding the South African government pension fund – Public Investment Corporation – owned 19.36% of the business and management 9.71%.
Libstar, the owner of brands such as Amaro Foods, Cape Herb & Spice and mushroom supplier Denny, said it will use the funds raised from the share offering to pay down some of its debt.
In April, co-founder and chief executive Andries van Rensburg explained the decision to list Libstar’s shares: “The decision to embark upon a JSE listing is an exciting step in the next phase of Libstar’s development and growth story.
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By GlobalData“The capital that we raise from the listing will support our growth prospects and allow us to, amongst other things, invest further in our categories and manufacturing facilities.”
