As part of its intentions to restructure outside of its home market, South African grocery store Pick n Pay announced today that it will sell its 51 percent stake in a joint venture to quit Nigeria.
In collaboration with A.G. Leventis (Nigeria), the retailer entered the Nigerian market less than five years ago and now operates two locations there.
In the meantime, Pick n Pay, which is using an IPO to list its bargain grocery chain Boxer in Johannesburg, stated today that the IPO’s base size would be in the higher range of its forecast.
In the past, Pick n Pay stated that the IPO’s proceeds might range from R6 billion to R8 billion ($339 million to $452 million).
Laptops 1000An overallotment option, which was not anticipated to exceed 500 million rand and would be settled through the issuing of additional shares, would be part of the Boxer IPO, the retailer said in a statement.
If demand is larger than anticipated, the underwriter may sell more shares than first anticipated under an overallotment option. Price stability is one of its benefits.
The IPO is a component of Pick & Pay’s two-phase recapitalization plan, which aims to repair its core Pick n Pay supermarket business, which is losing money, and reduce its debt.
Another group goal is a market value that fairly represents Boxer’s “superior” growth and return on invested capital.
