File Image: IOL
JOHANNESBURG - Glassmaker Consol is planning to raise R3.04 billion through a bookbuild when it lists on the JSE on May 4. 

The group said yesterday that the initial public offering (IPO) price would be between R1.50 and R6.50 a share with an expected market capitalisation of between R8bn and R9.8bn. 

The group said the offer shares will represent between 31 percent and 38 percent of Consol’s ordinary shares on the listing date, depending on the final offer price. 

Chief executive Mike Arnold said the listing would allow the group to pursue its growth strategy in Africa and to achieve its ambition of being the first choice for glass packaging supply in Africa. 

“The highlights and appeal for potential investors include not only our highly experienced and established management team, but also that we are a market leader in a highly attractive industry, and we operate in consumer markets with solid long-term growth prospects,” Arnold said.


The group delisted in 2007 when it was taken by a consortium of private equity investors led by Brait Private Equity, which also included Old Mutual Private Equity, Sanlam Private Equity, HarbourVest Partners and the management of Consol. The group is also constructing a new Greenfield facility in Debre Birhan, Ethiopia, expected to be commissioned during the fourth quarter of 2018. 

Its new facility in Ethiopia is expected to have an initial production rate of approximately 40 000 tons of output a year and it wants to increase it to approximately 60 000 tons of output a year as the facility increases production to its installed capacity over a three year period, based on market demand.

The company said yesterday that the listing would enable it to strengthen its balance sheet and simplify its capital structure as well as its growth strategy. 

In the six months to end December results, Consol reported revenue of R3.72bn with adjusted earnings before interest, tax, depreciation and amortisation (Ebitda) of R936 million. For the year to end June, it reported R6.19bn revenue with adjusted Ebitda of R1.61bn. 

Consol has operations in South Africa, Kenya and Nigeria, and exports to 17 African countries from its facilities in South Africa and Kenya. The glassmaker provides glass packaging products to customers in a variety of industries, including beer, wine, flavoured alcoholic beverages, non-alcoholic beverages, spirits and food. 

Consol said it wanted to achieve growth through a number of initiatives, including profitable growth in southern Africa, by retaining market share and investing. The group said it also wanted to improve profitability through superior operational competence, delivering operational efficiencies through South African markets volume growth potential of approximately 3 percent to 4 percent a year from 2017 to 2021.

- BUSINESS REPORT