CHRIS GILMOUR: Boxer is a top shelf investment despite the bottom line
Food retailer’s share price weakened on release of the results, raising questions on what the market was expecting
It’s an absolute pleasure to write about Boxer, arguably SA’s fastest-growing listed food retailer. Though it’s been around for almost 50 years, it has been listed on the JSE only since late last year, when it made its debut as part of a rescue package for the ailing Pick n Pay, its former owner. A total R8.5bn was raised in the private placement, which was the largest initial public offering (IPO) on the JSE in the past eight years. Aimed mainly at institutional investors, the offer was oversubscribed multiple times and whatever metric is used, the listing was a huge success.
The maiden listed results for the year to March 2 exceeded guidance on most metrics and in the normal course of events, should have been enough to ensure that the share price rallied strongly. Seemingly perversely, however, the share price weakened on release of the results, raising questions about what the market was expecting...
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