JOHANNESBURG - Libstar Holdings announced on Friday that it had raised R3billion through a placement of 243.5million shares at an offer price of R12.50 a share.
The group will list on the JSE on Wednesday. It signalled its intention to list on the JSE last month.
The group said the offer consisted of an offer for subscription by the company of R1.5bn, representing 120million offer shares and a concurrent offer for sale by the selling shareholders of R1.5bn, representing 123.5million offer shares.
Libstar is a producer and supplier of products in the consumer packaged goods industry, and markets a wide range of products in South Africa and globally. It is one of the largest unlisted food and personal care manufacturers in South Africa and the group said it operated 27 business units across the country.
The group owns brands such as Denny, Cook '* Bake, Lancewood, Cape Herb and Goldcrest.
“The company intends to use the net proceeds received from the offer to repay a portion of the indebtedness outstanding under the facilities, thereby creating more flexibility to pursue its acquisitive and internal investment growth strategy,” it said.
The majority shareholders in the group after listing will consist of the Abraaj group with a 61.55percent stake in it. The Public Investment Corporation will hold a 16.8percent stake, and Libstar management will have an 8.65percent stake.
The group is a Level 6 black economic empowerment (BEE) contributor. The BEE shareholders will have a 13percent stake in the company.
“Libstar has recently concluded and is in the process of implementing a BEE transaction through the establishment of an employee share trust as well as a trust aimed at encouraging the development of black-owned businesses within Libstar’s value chain (BEE Development Trust),” the group said.
The group has attributed its growth to strategic acquisitions as well as the organic growth of the respective business units.
“In particular, growth is facilitated by the acceleration of value-enhancing projects within existing business units, expansion in market areas where Libstar has demonstrated its ability to grow at a pace ahead of the market pursuant to superior growth relative to the industry norm in key categories and further growth into export markets,” the group said.
The group started its operations in 2005 and today it boasts about R8.8billion in revenue, which has been achieved through both organic and acquisitive growth.
It said 41percent of its staff comes from previously disadvantaged groups and they also make up 46percent of its management.