Waco International Plans to List Shares on South Africa's JSE

  • Profit surged 94% over past three years as revenue increased
  • Growth rate seen moderating as company looks for acquisitions

Waco International Holdings Ltd. plans to sell shares on South Africa’s bourse to allow the partial exit of a group of investors including Ethos Private Equity Ltd., Rand Merchant Bank and Standard Bank Group Ltd. from the equipment-hiring company.

The listing on the main board of the Johannesburg Stock Exchange is subject to market conditions and approvals, Waco said in an e-mailed statement on Monday.

A group of investors led by JPMorgan Chase & Co.’s buyout unit and the company’s management in 2006 paid 5.4 billion rand ($404 million) for Waco in South Africa’s biggest buyout transaction at the time. The business was purchased from Johannesburg-based Ethos and Citigroup Inc., which had bought the company in 2000, resulting in plans for an initial public offering to be abandoned. Ethos, FirstRand Ltd.’s RMB and Standard Bank in July 2012 said they agreed to buy control of the company for an undisclosed amount.

Waco’s revenue increased 45 percent over the past three years to 4.5 billion rand in the fiscal 2015, while adjusted earnings before interest, tax, depreciation and amortization jumped 94 percent to 768 million rand, the company said.

“Management believes that the strong growth rate achieved over the last three financial years will moderate as a result of the group’s higher profit base,” Waco said. “In the short- to medium-term, management is targeting a sustainable organic revenue growth rate in the high single-digit to low double-digit range, which could be bolstered by future acquisitions.”