Waco Seeks Up to $258 Million in Johannesburg Share Listing

  • South African company to raise $140 million from new shares
  • Owners including Ethos will also sell shares in partial exit

Waco International Holdings Ltd., a South African equipment rental and industrial services company, plans to raise as much as 3.5 billion rand ($258 million) from the sale of new and existing shares ahead of an Oct. 23 listing on the Johannesburg Stock Exchange.

Waco will offer 43.2 million new stock at an estimated price of between 36 rand to 45 rand, raising a maximum of 1.9 billion rand, the company said in a statement on Monday. Existing Waco shareholders, which include Johannesburg-based Ethos Private Equity Ltd., Rand Merchant Bank and Standard Bank Group Ltd., will sell 35.3 million existing shares at the same price, the company said.

The share sale will be the second on the JSE this month after Balwin Properties Ltd., a residential-housing developer, said on Friday it planned to raise as much as 1.6 billion rand in an IPO. Dis-Chem Pharmacies (Pty) Ltd., South Africa’s second-biggest retail chain of chemists by number of stores, said last week it had hired advisers to help with a planned share sale next year.

Waco, which rents products from scaffolding to portable sanitation, is listing on the JSE to access capital for future growth and allow the partial exit of the ownership group led by Ethos, which bought control of the company in 2012. Existing shareholders will retain about 37 percent of the company after the listing, Waco said.

The final offer price and number of shares issued will probably be announced Oct. 16, the company said.

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