Pick n Pay secures $471 million in Boxer IPO to drive growth strategy

Timilehin Adejumobi -
Key Points
  • Pick n Pay raised R8.5 billion ($471 million) through Boxer IPO, exceeding its R8 billion ($451 million) target.
  • Boxer’s IPO was oversubscribed, reflecting strong investor confidence and a post-listing value of $1.4 billion. 
  • The proceeds from Boxer’s IPO will help reduce debt and fuel Pick n Pay’s strategic expansion.

Pick n Pay, a leading South African retailer partly owned by the billionaire Ackerman family, secured R8.5 billion ($471 million) through the oversubscribed initial public offering (IPO) of a 34.4 percent stake in its discount retail arm, Boxer.

The IPO, which priced shares at R54 ($2.9) each, exceeded its initial target of R8 billion ($451 million), the company announced Monday.

The proceeds from the listing, one of Africa's largest in 2024, are part of a strategic plan to reduce debt and fuel Pick n Pay's expansion.

The sale marks the second and final phase of CEO Sean Summers' recapitalization strategy, following a R4 billion ($220.3 million) rights issue earlier this year.

Boxer valued at $1.4 Billion as IPO sparks investor confidence

Boxer’s IPO drew strong interest, with the offer oversubscribed multiple times at the top price range. “Local and international investors have shown remarkable confidence in Boxer’s growth potential,” said Boxer CEO Marek Masojada.

A total of 157.4 million shares were offered, with an additional overallotment option for 9.26 million shares that could increase the market capitalization to R24.7 billion ($1.4 billion).

Post-listing, Pick n Pay retains a 65.6 percent stake in Boxer, ensuring continued control over the discount retail giant as it positions itself for further growth.

Boxer shares will begin trading on the Johannesburg Stock Exchange (JSE) on November 28, with a secondary listing on a local alternative market.

Pick n Pay’s strategic growth bolstered by Boxer’s IPO

With over 2,000 stores across eight African countries, Pick n Pay is South Africa’s second-largest grocer, trailing Shoprite. The Ackerman family, holding 16.71 percent of the company (124.68 million shares), is expected to maintain influence as Boxer lists on the JSE.

Founded in 1977 in KwaZulu-Natal, Boxer has grown into a dominant player in South Africa’s discount grocery sector, with 489 stores and a 68 percent market share in the local discount retail space. The IPO proceeds will further strengthen Boxer’s position, supporting Pick n Pay’s long-term growth objectives.