Transaction Capital’s used-car business, WeBuyCars , gained on trading debut on the Johannesburg Stock Exchange, marking the start of a potential revival in capital market activity after years-long lull.
Shares of the used-car firm opened at R20 per share, above the initial public offering price of R18.75 a share, which implied a total market capitalisation of R8.34 billion at open. The stock traded at R20.30 by 11am. ADVERTISEMENT CONTINUE READING BELOW Read: As WeBuyCars lists, is buying new listings profitable?
It’s the first listing at the JSE this year, after hosting just three companies in the past five years. In comparison, India had more than 50 IPOs just this year.The JSE expects about 10 listings this year, including for cannabis firm Cilo Cybin Holdings on 12 April. This has been on ice for three years due to unfavourable market conditions and the plan is to have the stock trade on Euronext, with a secondary listing on the JSE.
“We have experienced rapid growth within WeBuyCars for a long period now,” he said in an interview. “It’s definitely large enough to merit a separate listing.”You can also listen to this podcast on iono.fm here.