April 24, 2018 / 11:14 AM / 7 months ago

South Africa's Libstar targets at least $692 mln valuation in IPO

JOHANNESBURG, April 24 (Reuters) - Libstar Holdings IPO-LBRJ.J on Tuesday priced its initial public offering in a range of 12.50 rand and 16 rand, valuing South African maker of sweets and gluten-free buns at as least as 8.5 billion rand ($691.93 million).

Libstar’s share sale on the Johannesburg bourse comes as glass bottle maker Consol is set to float on May 4.

The listing of Libstar, whose customers include upmarket food retailer Woolworths, will test confidence among business leaders and investors that newly elected President Cyril Ramaphosa will follow through with his promises to revive the economy. Libstar, which has been granted permission to list 681.3 million shares, aims to sell 105.3 million shares, or roughly a 17 percent stake, at between 12.50 and 16 rand each to raise up to 1.5 billion rand ($122.07 million). The pricing range values the company at between 8.5 billion rand and 11 billion rand.

The offer also includes the sale of 132.4 million shares by existing shareholders, which include private equity firm Abraaj and the Public Investment Corporation, which manages South African government employee pensions.

The final pricing will be released on May 4 and the listing is pencilled in for May 9.

The money will be used pay off debt, pursue acquisitions and invest in existing businesses, it said in a statement.

$1 = 12.2844 rand Reporting by Patricia Aruo, editing by Louise Heavens

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