Dis-Chem said on Monday it intended to list on the JSE in the latest phase of its growth story.
The pharmacy chain, which has 101 stores in South Africa
and two partner stores in Namibia, seeks to double its store footprint in the next five to eight years by pursuing store roll-out opportunities and converting independent pharmacies to the Dis-Chem brand.
The company expects to be listed in the six-member food and drug retailers sector, which includes Clicks Group.
“Our decision to list on the JSE is an important next phase of Dis-Chem’s growth story. A listing will support our growth and allow us to better service our customers and other stakeholders,” said co-founder and CEO Ivan Saltzman.
The Saltzman Family Trust owns just over two-thirds of the company.
The listing will also allow existing founder and management shareholders to exit a portion of their investment in the company while still remaining materially invested.
The proposed offering – the details of which were not yet released – is expected to consist of an offer for subscription by the company of new ordinary shares.
Net proceeds will be used to repurchase shares from existing shareholders, repayment of existing indebtedness and general corporate purposes.
Dis-Chem generated revenue of R15.5bn in the 2016 financial year and earnings before interest, tax, depreciation and amortisation was R1.1bn.
Aside from the retail pharmacy chain, the company has a wholesale business, CJ Distribution, which it also plans to expand.
The pharmacy chain, which has 101 stores in South Africa
and two partner stores in Namibia, seeks to double its store footprint in the next five to eight years by pursuing store roll-out opportunities and converting independent pharmacies to the Dis-Chem brand.
The company expects to be listed in the six-member food and drug retailers sector, which includes Clicks Group.
“Our decision to list on the JSE is an important next phase of Dis-Chem’s growth story. A listing will support our growth and allow us to better service our customers and other stakeholders,” said co-founder and CEO Ivan Saltzman.
The Saltzman Family Trust owns just over two-thirds of the company.
The listing will also allow existing founder and management shareholders to exit a portion of their investment in the company while still remaining materially invested.
The proposed offering – the details of which were not yet released – is expected to consist of an offer for subscription by the company of new ordinary shares.
Net proceeds will be used to repurchase shares from existing shareholders, repayment of existing indebtedness and general corporate purposes.
Dis-Chem generated revenue of R15.5bn in the 2016 financial year and earnings before interest, tax, depreciation and amortisation was R1.1bn.
Aside from the retail pharmacy chain, the company has a wholesale business, CJ Distribution, which it also plans to expand.
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