South African consumer food maker Libstar Holdings raised its planned 1.5 billion rand ($119 million) in a share sale on Friday, ahead of a what will be the biggest Johannesburg stock market listing so far this year. The initial public offering (IPO) was priced at 12.50 rand per share, at the bottom of the previously announced price range of 12.50 to 16 rand, and valuing the company at 8.5 billion rand.
The bulk of the money will be used to pay debt and to help the company expand, Libstar said in a statement. The listing of the company, whose customers include upmarket food retailer Woolworths, comes a week after glass bottle maker consol backtracked on plans to float, citing an "environment not conducive to the offer achieving valuation objectives."
Libstar, which intends to float on the stock exchange on May 9, will enter a largely subdued equity market as the euphoric mood following the election of President Cyril Ramaphosa appears to be fading. "I think the euphoria has died down a little bit and we are back down to basics," said Jacques Potgieter, equities trader at Avior capital markets.