Bidvest Foodservices Spinoff Leapfrogs Parent’s Market Value
- Bid Corp rises to $6.5 billion market cap on debut trading day
- Parent company now less than half the size of spun-off unit
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Bid Corp Ltd., the foodservices business spun off from Bidvest Group Ltd., rose to more than double its parent’s market value on the company’s first day of trading, showing investors’ preference for South African stocks with greater international exposure.
Bid Corp. shares started trading on the Johannesburg Stock Exchange at 270 rand and rose 13 percent to 304 rand by the close, valuing the company at 102 billion rand ($6.5 billion). Bidvest, which will now focus on services such as car rental, freight and office management, is valued at 40 billion rand.