Pioneer Foods has become South Africa’s fourth-largest food group after listing on the Johannesburg Stock Exchange.

The company made its stock-market debut yesterday (23 April) and saw its market capitalisation reach almost ZAR6bn (US$77.1m).

Pioneer plans to raise ZAR500m on the JSE and broaden its shareholder base through a rights issue at ZAR25 per share. It is expected that the rights issue will subdue the share price.

The ZAR500m raised will be used to expand Pepsi, Weet-Bix and Pioneers bread bakeries, the group has indicated.