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The Johannesburg bourse is gearing up for an IPO in the Pick n Pay Stores Boxer unit, expected before the end of the year. Investors are also looking toward Anglo American Plc’s plans for the spinoff of its platinum and diamond businesses.
South Africa is poised for a surge in initial public offerings and fund-raising activity as soon as next year, spurred by optimism that the continent’s biggest economy may be turning a corner after years of lackluster growth, said JPMorgan Chase & Co.
Positive sentiment has been building with the formation of a business-friendly governing coalition after the African National Congress lost its parliamentary majority for the first time since 1994 in the May 29 election. That’s triggered a wave of investment by multinationals, rallies in the rand and bonds, and a rise of more than 20% in the benchmark stock index in dollar terms since June.
The Johannesburg bourse is gearing up for an IPO in the Pick n Pay Stores Boxer unit, expected before the end of the year. Investors are also looking toward Anglo American Plc’s plans for the spinoff of its platinum and diamond businesses.
Other possible high-profile IPOs include Coca-Cola’s listing of its African bottling business. Bloomberg previously reported that the beverages company may seek an $8 billion valuation for the division in 2025. The Johannesburg Stock Exchange is intensifying efforts to attract inward and secondary listings, offering opportunities for businesses with African or sub-Saharan African ties, according to Bell.
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JPMorgan, the largest US bank, predicted in October that South Africa’s economy would grow 1% this year and 1.4% in 2025. That’s after gross domestic product expanded by an average of less than 1% over the past decade.
