Dis-Chem’s share issue provokes retail outrage
Retail investors, many of whom are loyal Dis-Chem customers, are up in arms because they received no shares in the placement of 236.8-million Dis-Chem shares ahead of Friday’s listing on the JSE. It now looks as though a listing intended to enhance the retailer’s profile with investors and customers has failed on both counts. Some disgruntled individuals are vowing to transfer their shopping allegiance to Clicks. Dis-Chem would not release details about the investors who picked up the R4.4bn in shares, sparking speculation among locals that much of it has gone to powerful international funds. Some details are expected to be released on the JSE’s news service on Thursday. On Wednesday evening, Dischem said it could not comment on individual allocations that had been made but said the offering had been for institutional investors and was not open to the general public.
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