Nasdaq-listed Karooooo Investment (KRO) will list on the main board of the JSE tomorrow via a secondary listing, after 98.6 percent of eligible Cartrack Holdings shareholders opted to remain invested in Karooooo. Picture: Nhlanhla Phillips/African News Agency/ANA
Nasdaq-listed Karooooo Investment (KRO) will list on the main board of the JSE tomorrow via a secondary listing, after 98.6 percent of eligible Cartrack Holdings shareholders opted to remain invested in Karooooo. Picture: Nhlanhla Phillips/African News Agency/ANA

Karooooo Investment to be represented on the JSE via secondary listing

By Edward West Time of article published Apr 20, 2021

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CAPE TOWN - NASDAQ-listed Karooooo Investment (KRO) will list on the main board of the JSE tomorrow via a secondary listing, after 98.6 percent of eligible Cartrack Holdings shareholders opted to remain invested in Karooooo.

Shareholders in Cartrack, which provides real-time mobility data analytics solutions for the transportation sector in more than 20 countries, in February approved a plan to list founder and chief executive Zak Kalisto’s investment vehicle, Karooooo, on the Nasdaq, with an inward listing on the JSE, following the delisting of Cartrack on the JSE.

Karooooo said yesterday in a statement that Cartrack shareholders holding 9.41 million Karooooo Investment shares had participated in the reinvestment offer, and, pending final approval of the JSE, Karooooo would, by way of the inward secondary listing, list all its issued shares on the JSE.

Of the 9.4 million KRO shares, 5.77 million were public shareholders constituting a 61.4 percent free float.

The Cartrack shareholders would receive their allocated Karooooo Investment shares tomorrow.

Karooooo would own 100 percent of Cartrack upon its inward secondary listing on the JSE.

Calisto said previously that the Nasdaq listing would create a more efficient global corporate and operating structure that reflected the company’s international operations and global growth strategy. It would accelerate the growth strategy, and it would enable it to attract and retain international talent.

The US listing would also provide access to global technology infrastructure and research and development, and assist in attracting a larger and more diverse pool of investors.

It would also provide the group with access to global capital markets and potentially result in a re-rating of the company’s valuation, similar to that of its global software peers.

Karooooo closed at $32.99 (about R469) on the Nasdaq on Friday.

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