Libstar shares slip in lacklustre main-board listing
The lukewarm listing is not totally surprising as the company placed its shares at the lowest level of its indicative pricing range of R12.50-R16 per share
Household brands distributor Libstar made a dull market debut on Wednesday with its shares falling below the pre-listing issue price. The lukewarm listing was not totally surprising as the company, which raised R1.5bn in fresh capital, placed its shares at the lowest level of its indicative pricing range of R12.50-R16 per share. Investors have also recently shown a lack of appetite for consumer stocks, with a sluggish economy pinching discretionary spending. Libstar shares snuck as low as R11.61 before finding support at R12.34 at the close of trade. This was 1.28% off the issue price. Trade was fairly vibrant with shares worth R277m changing hands. While R1.5bn of fresh capital was raised, certain shareholders — including international investment firm Abraaj — also sold down their shareholdings to the tune of R1.5bn. A R800m dividend was also paid to existing investors ahead of the listing. Anthony Clark of Vunani Securities said the weak debut by Libstar highlighted the market’s d...
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