South African tycoon Zak Calisto's Karooooo halts secondary offering amid market changes

Oluwatosin Racheal Alabi -

Key Points

  • Karooooo CEO Zak Calisto terminated the secondary public offering due to recent market changes and their impact on share price.
  • Despite the termination, the Selling Shareholder retains the option to conduct an offering in the future when market conditions improve.
  • Karooooo remains well-positioned for future growth with a strong subscriber base and a global presence in the telematics sector.

Karooooo Limited, a Singapore-based mobility platform led by South African businessman Zak Calisto, announced the termination of the underwritten secondary public offering of ordinary shares.

The Offering, initially announced on July 24, 2024, aimed to improve liquidity for investors. Despite investor interest and oversubscription, recent market changes and their impact on the share price led to the decision to halt the Offering.

As a result, Karooooo will not sell any ordinary shares at this time. However, the Selling Shareholder retains the option to conduct an offering in the future when market conditions are better.

About Karooooo

Karooooo, headquartered in Singapore, provides global software solutions in the telematics industry. The company offers real-time mobility and workforce data analytics to simplify decision-making for physical operations. Karooooo serves customers in 25 countries across five continents and supports more than 2 million subscribers as of May 31, 2024.

Founded by South African entrepreneur Zak Calisto, Karooooo has become a key player in the telematics sector. The company delivers cutting-edge technology that enhances efficiency and safety in various industries. Its solutions are widely used in logistics, transportation, and field services, providing essential insights for operational improvements.

Despite the termination of the secondary public offering, Karooooo remains well-positioned for future growth. The company’s strong subscriber base and global presence highlight its potential to benefit from favorable market conditions when they arise.

Commitment to shareholder value

This announcement reflects Karooooo’s prudent approach to market dynamics. The company’s commitment to maintaining shareholder value and financial stability remains a guiding principle. Karooooo continues to explore future opportunities for growth and expansion.

Under Zak Calisto’s leadership, Karooooo has emerged as a global leader, with a network of over 1,950,000 connected vehicles and equipment. The company assists thousands of enterprise customers in their digital transformation efforts, serving more than 1.7 million users worldwide across 23 countries on five continents.

Karooooo’s shares propel Calisto’s wealth by $93.14 million 

Karooooo’s shares on the Nasdaq Stock Exchange have risen by 14.36 percent from $28 on June 27 to $32.02, propelling the company’s market capitalization close to $1 billion and delivering substantial gains for investors.

The strong performance of Karooooo shares has boosted Zak Calisto’s stake in the company by $93.14 million over the past 11 days, increasing from $648.73 million on June 27 to $741.87 million.