Dis-Chem share price falls after JSE listing

Johannesburg – Dis-Chem Pharmacies share price fell by over 8% after listing on the Johannesburg Stock Exchange (JSE) on Friday.

The family-owned pharmacy and health company made its debut at R23.36 a share. The price subsequently fell to R21.28, and settled at R21.48 when markets closed.

Dis-Chem is the fourteenth company to list on the JSE this year. The retailer currently has 101 stores in South Africa and two partner stores in Namibia. It is South Africa’s second-biggest retail chain of chemists, the biggest being Clicks.

In contrast, Clicks’ market capitalisation is at R28bn. 

The listing is part of the Dis-Chem group’s growth strategy.

READ: Dis-Chem plans JSE listing as it doubles pharmacies

“Listing will allow us to advance and improve our strategy, and at the same time ensure that we can continue growing market share across our product offerings, as well as building on the tremendous brand positioning that has been established over the last 38 years,” said CEO and co-founder Ivan Saltzman.

The company has “more than doubled” its store base since 2010, and tripled it since 2008. Dis-Chem plans to open at least 18 stores by February 2018, according to Saltzman. Besides pharmaceuticals, the company specialises in beauty, health and health food, sports supplements and well-being products.

Dis-Chem joins eight other companies listed in the food and drug retailers sector on the JSE. The sector has a total market capitalisation of R220.39bn, this is 2% of the JSE’s overall market capitalisation of R13.6tr.

Earlier this week, the company stated that it raised R4.4bn through the placement of 236.8m shares at R18.50 per share.

The shares placed on listing represent 27.5% of Dis-Chem’s issued share capital.

Read Fin24's top stories trending on Twitter:

We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For 14 free days, you can have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today. Thereafter you will be billed R75 per month. You can cancel anytime and if you cancel within 14 days you won't be billed. 
Subscribe to News24
Rand - Dollar
18.02
-0.4%
Rand - Pound
19.54
-0.8%
Rand - Euro
17.42
-0.3%
Rand - Aus dollar
11.75
-0.4%
Rand - Yen
0.13
-0.1%
Gold
1,645.28
+0.1%
Silver
18.94
+0.4%
Palladium
2,072.82
-0.0%
Platinum
864.50
+0.7%
Brent Crude
86.15
-5.0%
Top 40
57,090
-0.0%
All Share
63,384
-0.1%
Resource 10
56,258
-0.1%
Industrial 25
79,062
+0.8%
Financial 15
13,940
-1.4%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders