Retail giant Pick n Pay announced that its upcoming listing of the discount chain Boxer is now projected to raise approximately R8 billion, surpassing earlier estimates of R6 billion. The listing is set for the JSE’s main board by the end of 2024, marking a significant milestone for Boxer, which is positioned as one of South Africa’s leading retailers. A secondary listing on A2X will also take place, potentially including an overallotment option capped at R500 million, should demand exceed expectations.
As of late August, Boxer operates 489 stores across various formats, boasting a remarkable 12% sales growth in its recent half-year results. This performance notably outstrips Pick n Pay’s traditional supermarkets, which saw just over 3% growth. Boxer’s expansion plans are robust, with 53 new stores slated to open in the second half of the year, aiming for a total of 65 net new stores for the financial year.
With ambitions to double its turnover within five years and expectations for medium-term growth in the mid-teens, Boxer is actively exploring growth opportunities across South Africa, particularly in Gauteng. Analysts are optimistic about the IPO, highlighting Boxer’s impressive revenue growth and attractive trading margins, suggesting strong institutional support upon listing.