Pepkor rebounds from Tuesday’s crash
Investors appear to have rethought their knee-jerk reaction to the trading statement Pepkor issued on Tuesday
Pepkor rebounded 6.2% to R18.30 on Wednesday, recovering from Tuesday’s 6.4% crash after it issued a trading statement. At 3.20pm on Tuesday, Pepkor warned shareholders that its basic and headline earnings per share (HEPS) for the year to end-September would decline by up to 42%. The retailer separately listed from Steinhoff International in September 2017 said the drop was mainly due to the dilution caused by the shares it issued ahead of its initial public offering (IPO).
Pepkor indicated HEPS for its 2018 financial year would be about 50c lower than the 113.6c reported in 2017 when it was still part of Steinhoff. Pepkor’s shares in issue averaged 3.45-billion in its 2018 financial year compared to 2.68-billion in the prior financial year. The group said it issued 882-million new shares during its 2017 financial year, of which 132-million went to Tekkie Town's owners. Share dilution contributed about 30c to the drop in HEPS, Tuesday’s trading statement said. Pepkor said its ...
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