Cape Town – Agricultural retailer and trader Kaap Agri on Monday became the seventh company to list on the JSE in 2017.
The company has a southern African footprint stretching as far as Namibia, and has over 190 operating points in seven of the nine South African provinces.
Agri Kaap, with PSG-aligned Zeder as its largest shareholder, has diversified away from its Agri Mark outlets and now also offers financial, grain handling and agency services.
Kaap Agri managing director Sean Walsh is of the view that the listing will provide additional liquidity in Kaap Agri shares and thus create more value for shareholders.
“Listing on the JSE will make Kaap Agri visible to a wider investor audience and provide a platform for Kaap Agri to use its script for accretive merger and acquisition activities alongside organic growth,” he added.
Walsh is confident that the business will reach its target of a minimum annual growth of 15% in headline earnings per share over the next three years. “We don’t see listing as just a single event. It’s part of the process to continue to grow our business and generate a good return for our shareholders.”
In the six months ended March 31 2017, Kaap Agri's cash profit from operations was 21.3% higher than the previous year. An interim dividend of 29.4c per share was declared, compared to 26.5c in the previous year.Read Fin24's top stories trending on Twitter: Fin24’s top stories