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Transaction Capital, led by South African tycoon Jonathan Jawno, took a significant step today with the listing of its subsidiary WeBuyCars on the Johannesburg Stock Exchange (JSE) Main Board under the ticker “WBC.” The move is seen as a strategic maneuver to unlock shareholder value and expand WeBuyCars’ brand presence in the competitive used-car market.
Founded in 2001, WeBuyCars has become a dominant player in the pre-owned vehicle space, disrupting the traditional used-car buying and selling process. The company boasts a robust workforce of 2,800 employees, a network of 15 supermarkets, and 74 buying pods with over 340 nationwide buyers, demonstrating impressive growth and operational efficiency.
In February 2024 alone, WeBuyCars achieved strong results, purchasing 14,354 vehicles and selling 13,132, generating R1.8 billion ($95.67 million) in revenue. WeBuyCars CEO Faan van der Walt expressed confidence that the listing will strengthen the brand, enhance shareholder liquidity, and attract top talent.
Transaction Capital’s strategic move
Transaction Capital, a leading South African financial services group specializing in asset-backed lending and niche risk services, operates across South Africa and Australia as a non-deposit financial services entity.
Jawno, a founding member of Transaction Capital, holds a noteworthy 9.59-percent stake in the group, making him its second-largest shareholder after the Public Investment Corporation.
The decision to unbundle and list WeBuyCars was unveiled by Transaction Capital in late January, strategically aimed at unlocking shareholder value post a downturn in the group’s share price, attributed to the underwhelming performance of SA Taxi in 2023.
WeBuyCars trades successfully on debut
Valdene Reddy, Director of Capital Markets at the JSE, extended a hearty welcome to WeBuyCars, affirming the exchange’s enthusiasm about the new listing.
The inclusion of WeBuyCars marks the second listing on the JSE in 2024, enhancing the exchange’s portfolio, which currently comprises 283 companies, contributing to a market cap of R18.4 trillion ($978.11 billion).
Upon its debut, WeBuyCars commenced trading at approximately R20 ($1.06) per share, signaling a promising start for the company and highlighting the potential for further growth within the automotive sector.
