Karooooo CEO Zak Calisto has announced plans to sell R1.3 billion worth of shares in the company he founded. The transaction involves 1.5 million ordinary shares priced at $50 each, totalling $75 million. While this reduces his personal stake, Calisto will remain the largest shareholder with 58% ownership. The deal includes an option for underwriters to buy an additional 225,000 shares, which could slightly lower his holding to 57.27%. Despite the sale, Calisto’s control over the company remains secure due to a voting agreement with chief sales officer Juan Marais.
The agreement ensures that even if Calisto’s ownership dips below 51%, Marais’s shares—held through a company called One Spire—will be voted as Calisto directs. This safeguards his influence over Karooooo, which he established in 2004. The company, known for its vehicle tracking and fleet management solutions, is listed on both the JSE and Nasdaq. In 2021, it shifted its primary listing to the US to attract higher valuations and access deeper capital markets.
Karooooo clarified that it will not receive any proceeds from the share sale, though it will cover associated costs—excluding underwriting fees, which Calisto will pay. Leading financial institutions, including UBS Investment Bank, William Blair, and Standard Bank, are managing the offering. The transaction is set to conclude soon, pending standard closing conditions. This move highlights Calisto’s strategic financial planning while maintaining his leadership role in the business.