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.

* Sign up to Fin24's top news in your inbox: SUBSCRIBE TO FIN24 NEWSLETTER

ZAR/USD
17.42
(+0.39)
ZAR/GBP
22.67
(+0.74)
ZAR/EUR
20.48
(+0.27)
ZAR/AUD
12.41
(+0.74)
ZAR/JPY
0.16
(+0.87)
Gold
1923.52
(+0.93)
Silver
25.31
(+1.96)
Platinum
930.57
(+1.20)
Brent Crude
44.46
(-1.09)
Palladium
2125.00
(+2.25)
All Share
57339.50
(+0.30)
Top 40
53000.88
(+0.32)
Financial 15
10190.96
(-0.24)
Industrial 25
76334.30
(+1.07)
Resource 10
58393.09
(-0.49)
All JSE data delayed by at least 15 minutes morningstar logo
Company Snapshot
Voting Booth
Do you think it was a good idea for the government to approach the IMF for a $4.3 billion loan to fight Covid-19?
Please select an option Oops! Something went wrong, please try again later.
Results
Yes. We need the money.
11% - 967 votes
It depends on how the funds are used.
74% - 6432 votes
No. We should have gotten the loan elsewhere.
15% - 1328 votes
Vote