HomeChoice looks to growth with capital-raising exercise
Retail and financial services specialist HomeChoice is considering a large capital-raising exercise to fund growth. HomeChoice SA CEO Shirley Maltz confirmed on Monday that the group — which has recently enjoyed much success with the FinChoice financial services offering — is weighing up options to increase its free float by a minimum of R1bn through the placing of new shares and a reduction in holdings by two large shareholders. HomeChoice holds a market capitalisation of R4.7bn. The proceeds from the new share issue would be used for strategic capital investments — most notably new product developments, systems and customer platforms as well as a roll-out of customer showrooms and expanding logistics infrastructure. The showroom option is noteworthy in HomeChoice’s evolution from mainly a catalogue retailer to an omni-channel retailer with a strong digital sales capability. Maltz said the success of HomeChoice’s first showroom in Cape Town had spurred plans for about 30 showrooms ...
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