JOHANNESBURG (Reuters) - Libstar Holdings Propriety Ltd, a South African consumer goods company, plans to raise 1.5 billion rand ($124 million) to repay a portion of its debt and expand its capacity by selling shares on the Johannesburg Stock Exchange, the firm said on Monday.
The offering, which will only be made available to private investors, is targeting a free float of at least 40 percent, Libstar said.
Libstar is the third company in the past two weeks to state its intention to float in Johannesburg, highlighting a more positive mood among investors following newly elected president Cyril Ramaphosa’s promises to kick-start the economy.
“The decision to embark upon a JSE listing is an exciting step in the next phase of Libstar’s development and growth story,” said Co-Founder and Chief Executive Officer, Andries van Rensburg.
Libstar’s 27 business units offer consumer products that include specialized food such gluten-free baked products to retailers including Woolworths (WHLJ.J).
More details of the offering, including the number of shares and issue price, will be released with the pre-listing statement at a later stage.
Reporting by Patricia Aruo. Editing by Jane Merriman