Steinhoff Africa Retail (Star) will list on the JSE on Wednesday at R20.50 a share, the mid-point of the range tipped by management in its prelisting statement. Analysts said the R20.50 at which 750-million shares were placed in the bookbuild exercise was on the expensive side. It is equivalent to a price-to-earnings rating of about 21 times and points to a market capitalisation of R70.7bn for Star. The success of the bookbuild exercise, which was five times oversubscribed, suggests there will be few sellers when trading starts on Wednesday. "Very few of those who have acquired shares in the bookbuild will be sellers. People have bought this share to keep," said analyst Syd Vianello. Star will give investors a rare opportunity to invest in a pan-African retail operator. "It is the only company that can offer this quality access to African retail, so it won’t come cheap," Vianello said. The offering includes apparel chains Pepkor and Ackermans and grocery retailer Shoprite. While the...
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