Dis-Chem Pharmacies dips on market debut

The Dis-Chem pharmacy in Canal Walk mall, Cape Town. File picture: Henk Kruger

The Dis-Chem pharmacy in Canal Walk mall, Cape Town. File picture: Henk Kruger

Published Nov 18, 2016

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Johannesburg - South African drug store chain Dis-Chem made its debut on the Johannesburg bourse on Friday, with its shares opening at R23.26 and valuing it at around R20 billion.

Dis-Chem's share price subsequently stumbled slightly to R21.50.

Founded by chief executive Ivan Saltzman and his wife Lynette, Dis-Chem is tapping an uncertain equity market as it looks to take on larger rival Clicks Group and retailers Shoprite and Pick n Pay, which also have pharmaceutical retail operations.

Dis-Chem said earlier this week it had sold a 27.5 percent stake to investors at R18.50 per share, valuing the company at almost R16 billion.

Dis-Chem, which runs about 100 stores, has grown from a start-up in 1978 to a major health products retailer with annual sales of more than 15 billion rand.

REUTERS

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