MARC HASENFUSS: A smart way to list
Kaap Agri is being smart in listing on the JSE without a capital raise
Kaap Agri, the specialist retailer focused on farming communities, looks set to list on the JSE on June 26. The day probably can’t come soon enough for astute (and patient) investors in this perennially profitable unlisted group. As an unlisted stock, Kaap Agri’s enviable endeavours in growing and diversifying its retail base initially received only muted acknowledgement. More recently, persistent rumours about listing — often discounted by Kaap Agri executives — have sparked more widespread interest in the shares, though the earnings multiple attached to the over-the-counter share still markedly lagged those of listed retailers. At the time of writing, there were fewer than 5,000 Kaap Agri shares offered at R55, with hopeful bidders lined up between R44 and R52. I believe Kaap Agri is being smart in listing on the JSE sans a capital raise. The company is cash generative and not in need of an infusion of fresh capital. There are ambitious expansion plans (especially in fuel retailin...
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