28 October 2024
South African grocery retailer Pick n Pay has announced its decision to exit the Nigerian market by selling its 51% stake in a joint venture, as part of a broader strategy to restructure operations outside its home country. CEO Sean Summers revealed the news today, emphasizing a shift in focus after less than five years of presence in Nigeria, where the company operates two stores in partnership with A.G. Leventis (Nigeria).
In conjunction with this exit, Pick n Pay is preparing for an initial public offering (IPO) for its discount grocery chain, Boxer, in Johannesburg. The retailer indicated that the base size of the IPO will likely reach the upper end of its guidance, with expected proceeds between R6 billion and R8 billion (approximately $339 million to $452 million).
The Boxer IPO will include an overallotment option, allowing underwriters to sell additional shares if demand exceeds expectations, which aims to provide price stability for investors. This move is part of Pick n Pay’s two-step recapitalization plan aimed at raising funds to reduce debt and address challenges within its core supermarket business.
The company also aims to enhance Boxer’s market valuation to reflect its strong growth potential and superior returns on invested capital.