Libstar: food for thought over listing
The owner of brands such as Denny and Goldcrest just wanted to make a quick buck, say analysts
The listing of Libstar, an investment company that owns food brands, should serve as a cautionary tale to corporate financiers not to waste investors’ time and money with ill-researched offerings. Too many companies are being given a chance to list on the JSE without being properly scrutinised, and Libstar is the latest of them, according to a number of seasoned stockbrokers and investment managers. Sasfin’s David Shapiro says such dud listings used to take place especially in the late 1980s and early 1990s. SA investors are getting a reputation for being willing to list anything, he says, which is a cause for concern. "Companies are supposed to operate for a number of years, build up a name and track record before they go public. We as investors want to know that we can trust management. However, we’ve seen many poor listings in SA in recent years," Shapiro says. "Perhaps only Dis-Chem stands out over the past four years or so as an impressive listing. I just think there are too ma...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.