Shares in South African dairy and beverage group Clover Industries rose today (14 December) on their first day of trading in Johannesburg in a listing that has raised ZAR575m (US$84.5m).

Clover’s stock opened at ZAR10.76 a share on the Johannesburg Stock Exchange and, by late morning, had climbed to ZAR10.87.

The launch was done in conjunction with a private placement of new ordinary shares in Clover’s share capital, with international and local institutional investors buying in.

Over 54.7m shares were offered and the book was almost three times oversubscribed. Among the larger local investors were fund managers Coronation, investment firm Allan Gray and financial services group Sanlam.

Clover claims to be the biggest chilled distributor in South Africa with leading local brands of milk, fruit-based beverages and dairy products.

Clover CEO Johann Vorster said the listing would help Clover consolidate its market position, while presenting opportunities for further acquisitions.