Pick n Pay is targeting a generous premium for Boxer Retail’s initial public offering (IPO). The ailing retail stalwart wants to rake in as much as R8.5bn from the sale of 202-million shares at R42-R54 each, valuing Boxer at a handsome R24.7bn. Admirable? Maybe. Realistic? Let’s not be carried away. 

Founded in 1977, Boxer’s outlets are strategically located at taxi ranks and rural shopping malls — the heartland of the vast budget consumer base. With an aggressive store rollout plan, Boxer is stepping into the ring with Shoprite, hoping to snatch a bigger slice of the grocery market pie. Given that three out of 10 South Africans are jobless, the low-income and welfare-dependent crowd is certainly a lucrative target. ..

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