ON THE SPOT
GIULIETTA TALEVI: Libstar CEO confident of growth and is planning to eat the other guy’s lunch
Business Day asks CEO Andries van Rensburg whether, to begin with, Libstar overpriced their initial public offering
The JSE’s embrace has of late been anything but warm for consumer-focused groups: Consol canned its listing late last month and Libstar, owner of brands such as Denny and Lancewood, didn’t exactly get the reception it wanted on Wednesday. Business Day asked CEO Andries van Rensburg whether, to begin with, they overpriced their initial public offering (IPO). No, I disagree. We are at a discount to a Tiger Brands and Rhodes Food and our price:earnings multiple is 14-15 times [theirs]. We were definitely not overpriced and, going forward, we’re confident, being a cash-productive business. We’ve had a good run over the past few years — we’ve seen growth of about 23% and organic growth of about 13%. We are busy with a number of projects for some of our bigger customers that will definitely enhance the bottom line. And the share must find its own place in the market. Of course, we’re a bit disappointed at some of the reporting that we saw but we are confident. Yet the market doesn’t share...
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