South African dairy processor Clover Ltd has said it hopes to use the funds from its IPO for expansion and debt repayment.

The firm confirmed yesterday (17 November) its intention to float its ordinary and preference shares on the Johannesburg Stock Exchange.

The listing will be implemented together with a capital raising by the company, it said, through the private placement of new ordinary shares in Clover with selected eligible investors.

According to Reuters, the firm is hoping to raise up to ZAR500m (US$71.2m) with the listing.

The net proceeds, Clover said, will be used to fund the company’s capital projects, primarily Project Cielo Blu – a capital project undertaken by Clover to redress inefficiencies in the supply chain – to repay debt and to fund potential acquisitions.

Clover CE Johann Vorster said: “The listing will be a major milestone for Clover. As a public company, our corporate and consumer brands will be aligned. This will contribute positively to the growth of our business as well as strengthen our position in the markets where we choose to operate.”

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Following the launch of the offering, Clover said it intends to suspend trading in the ordinary and preference shares on the over the counter market in order to facilitate the migration of trade to the main board of the JSE and the offering of ordinary shares.