The offer price range per ordinary share is between R12.50 a share and R16.
Libstar is a leading producer and supplier of high-quality products in the consumer packaged goods industry and markets a range of products in South Africa and globally.
The company said yesterday that it would offer a minimum of 237653915 million ordinary shares to qualifying investors based on a minimum free-float of 40percent and raising R1.5bn in the process.
It said it intended to use the net proceeds received from the offer to repay a portion of the outstanding debt, thereby creating more flexibility for the group to pursue its acquisitive and internal investment growth strategy.
Libstar, one of the largest unlisted food and personal care manufacturers in South Africa, said it operated 27 business units across the country.
The group said that the offer was not an invitation to the general public to subscribe for or purchase the offer shares in any jurisdiction.
The group, which owns brands such as Denny, Lancewood, Cape Herb and Goldcrest, prides itself on being a Level 6 black economic empowerment (BEE) contributor as it is committed to transformation.
Libstar’s majority shareholders consist of Abraaj, which has a 61.55percent share in the company.
The other two big shareholders are the Public Investment Corporation with 16.8percent and Libstar management, which holds 8.65percent. The BEE shareholders 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 (Esop 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.