[South Africa] Kaap Agri lists on the Johannesburg Stock Exchange
Kaap Agri Limited has listed in the “Speciality Retailer” sector of the JSE’s Main Board. Kaap Agri is the 7th company to list on the JSE this year.
Kaap Agri specialises in retailing and trading in agricultural, fuel and related retail markets in Southern Africa. With its strategic footprint, infrastructure, facilities and client network, it follows a differentiated market approach. In support of the core retail business, Kaap Agri also offers financial, grain handling and agency services.
Donna Nemer, Director: Capital Markets at the JSE, says the JSE is privileged to welcome Kaap Agri to the wide ranging group of retailers listed on the exchange. “We are proud to provide a liquid and well-regulated platform where a company like Kaap Agri can list alongside its peers in the wider retail industry. The opportunity to buy shares in retail companies allows ordinary South Africans to participate in the growth of companies they know and shop at every day.”
Nemer says Kaap Agri’s listing is also of special significance for the JSE because of the longstanding relationship the exchange has with the agriculture sector. “The grain handling services Kaap Agri offers, helps to ensure the physical delivery of grain which is crucial to the functioning of the JSE’s Commodity Derivatives Market. We see them as important partners to the JSE.”
Sean Walsh, Managing Director of Kaap Agri, says the company believes listing will provide additional liquidity in the share and create further value for its shareholders. “Listing on the JSE will make Kaap Agri visible to a wider investor audience which will draw in additional liquidity. The listing will also provide a platform for Kaap Agri to use its script for accretive merger and acquisition activities alongside organic growth.”
Walsh says Kaap Agri is confident that it will be able to reach its target of a minimum annual growth of 15% in headline earnings per share over the next three years. “We don’t see listing as just a single event. It’s part of the process to continue to grow our business and generate a good return for our shareholders. We are very happy that our company has reached this point in our journey and we look forward to building on our success from here.”
There are 27 retail companies listed on the JSE with a total market capitalisation of R590.3 billion. The sector contributes 4.3% to the JSE’s overall market capitalisation.