Boxer impresses at IPO with strong price gain

The shares of the South African discounter Boxer experienced a spectacular debut on the Johannesburg Stock Exchange on Thursday, with a remarkable 16 percent increase in price. The price action followed an initial public offering strongly supported by institutional investors, through which Boxer was able to raise 8.5 billion Rand (approximately 471 million dollars). With an opening price of 63.01 Rand, the shares were significantly above the issue price of 54 Rand. This reflects investors' confidence in the growth opportunities in the discount segment of the industry. CEO Marek Masojada emphasized before the traditional opening with a kudu horn the increased visibility and expanded access to growth capital that the stock market listing brings for Boxer. Investor interest was overwhelming, highlighting both the value of the Boxer business and the additional value potentials for shareholders of Boxer and the parent company Pick n Pay. Pick n Pay, the third-largest food retailer in South Africa by market capitalization, retains a majority of 65.6 percent in Boxer after selling 157.4 million shares, a 34.4 percent stake. It was reported in advance that the order book was oversubscribed at the highest offer price range, valuing Boxer's market capitalization at 24.7 billion Rand.