Lancewood cheese owner Libstar raises R3bn ahead of JSE listing

Johannesburg - Libstar Holdings sold stock at the bottom of its price range, yet still raised about R3bn to pay down debt and free up funds to pursue growth.

The South African owner of Lancewood cheese, which also supplies Woolworths’ [JSE:WHL] own-branded honey and spices, placed shares at R12.50 each, compared with a target of R12.50 to R16, the company said in a statement on Friday.

That raised R1.5bn, while existing shareholders led by Abraaj Group sold shares worth the same amount.

The Johannesburg initial public offering fared better than that of Consol, Africa’s biggest glass-packaging maker, which scrapped a share sale last month.

The listing had attracted low investor demand, people familiar with the matter said at the time. Consol was seeking to raise R2.7bn.

Libstar’s shares are due to start trading on May 9.

JP Morgan Chase & Co and Standard Bank [JSE:SBK] acted as joint bookrunners.

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