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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.