The South Africa-based retail holding company, Steinhoff, is set to list its mattress business unit, Mattress Firm Group Inc., on the New York Stock Exchange (NYSE).
According to Moneyweb, the group has applied for an IPO of its common stock in line with the NYSE regulatory listing process. Details pertaining to the number of shares and the implied price of the shares that will be listed have not yet been made available.
Founded in 1964, Steinhoff operates retailing activities in more than 30 countries, with over 6,500 retail outlets belonging to 40 different brands.
The retailing giant was founded by German billionaire Bruno Ewald Steinhoff and is dual-listed on the Johannesburg and Frankfurt stock exchanges.
The move to list the mattress business unit on the NYSE aligns with Steinhoff’s strategic efforts to place the company’s operations on the road to sustainable earnings.
Billionaires.Africa understands that South African tycoon Christo Wiese acquired a 20-percent stake in the firm after selling his clothing and furniture company, Pepkor Holdings, to Steinhoff in 2014.
In 2017, a Deloitte audit report uncovered an accounting fraud that led to a crash in the company’s share price and valuation. As a result, former CEO Markus Jooste and Wiese resigned as members of the board.
Recently, analysts opined that Steinhoff is making a comeback after the accounting issues that disrupted the firm’s operations in 2017.
As of press time, Dec. 11, shares in Steinhoff were worth R5.2($0.332), 2.16-percent higher than their opening price on the Johannesburg Stock Exchange. At the current price, the company’s market capitalization is R21.7 billion ($1.39 billion).
