Johannesburg - Security barrier manufacturer Trellidor will list on the JSE at the end of this month.
The company’s chief executive, Terry Dennison, said the company expected to list with a share price of about R6 to R7 per share. This would allow Trellidor to achieve a market value of between R648 million and R756m.
Dennison said the offer would consist of about 53 million shares, representing 49 percent of the company’s shares in issue, with a placement of between R319m and R372m expected.
“Trellidor should perform relatively well in an economic downturn and as a public company with access to capital, it is well positioned to pick up some interesting acquisitions,” said Dennison.
“And as the business has spare manufacturing capacity, shareholder returns will be improved through operational gearing and manufacturing synergies.”
Trellidor estimated it had a 35 percent market share in its niche in the country’s main centres and 50 percent in outlying areas. It has 72 franchises in South Africa and distributors in 17 African countries, with an assembly plant in Ghana providing services to the West African region.