Boxer Retail intends to list on the Main Board of the JSE with a secondary listing on the A2X with a proposed offer for subscription of newly issued shares to selected investors.
Pick n Pay previously intended to raise between R6 billion and R8 billion through the listing of new shares, but the Group now expects the base size to be towards the upper end of the guidance.
In addition, the offer is expected to include an overallotment option to facilitate stabilisation activities. The overallotment option is not expected to exceed R5 billion, and it will be settled, if required, through the issuance of additional newly issued shares. The implementation of the ‘offer’ and ‘admission’ is subject to certain conditions with approvals being obtained from the JSE.
As part of an intra-group restructuring, Boxer Superstores Proprietary Limited and its subsidiaries will become a wholly owned subsidiary of Boxer Retail Limited to form the ‘Boxer Group’. Pick n Pay says more details regarding this restructuring will be set out in its pre-listing statement.
Boxer is SA’s fastest growing grocery chain with market share of the discount grocery segment, servicing customers in the lower-to-middle-income urban, peri-urban and rural SA and Eswatini communities. Its stores are in convenient, high footfall areas often in regional community centres that are close to public transportation.
It has three store formats being Boxer Superstores, Boxer Liquors, and Boxer Build. As at the 25th of August 2024, Boxer operated through 489 stores across three formats.
For FY2022 to FY2024, Boxer had a two-year store roll-out compound annual growth rate (CAGR) of 14% with its store count increasing by 12 net new stores for H1 FY2025 with its pace of new store openings accelerating during the second half of the year bring its total net new stores for FY2025 to 65.
Boxer’s turnover for H1 FY2024 increased by 12% to R19.8 billion from R17.7 billion for H1 FY2024 with its trading profit for the period having increased by 11.8% to R809 million (H1 FY2023: R723 million).
The discount grocery retailer has a 4.2% market share of the formal grocery market (approximately 68% of the discount grocery retail market) calculated based on total turnover for Boxer South Africa (excluding turnover for Boxer Eswatini stores), Shoprite (Usave) and Spar (SaveMor), for 2023, as a percentage of the formal grocery discount market.
Based on revenue market share, Boxer South Africa is estimated to be two times larger than the second largest discount retailer, Usave.
