South African fresh and canned food processor Rhodes Food Group Holdings plans to list new shares on the Johannesburg stock exchange in a move that could raise as much as ZAR1.35bn (US$122m).
The company said the share offer would comprise of up to 57.14m subscription shares and 42.75m selling shares. New shares will represent around 44% of outstanding share capital.
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Net proceeds from the share offer will be used to settle RFG’s ZAR169m mezzanine loan facility and provide the group with balance sheet flexibility, the company said. RFG added the cash will also be used to fund a planned ZAR71m investment in capacity expansion.
An improved financial position will be used to support the firm’s growth strategy. “RFG intends to grow organically and through strategic value accretive acquisitions thereby becoming a diversified Pan African food group operating primarily in the domestic market and high growth sub-Saharan countries,” the group said in listing documents.
