Farm Equipment and Finance Provider Kaap Agri Plans JSE ListingBy
South African company has annual sales of $430 million
Profit increased 15% even amid drought, slowing economy
South African agricultural services provider and retailer Kaap Agri said it intends to list its shares on Johannesburg’s stock exchange, replacing a system of over-the-counter dealings.
The 105-year-old company, which operates in four South African provinces and neighboring Namibia, posted revenue of 5.65 billion rand ($430 million) in the financial year that ended September. Profit climbed 15 percent as Kaap Agri’s businesses withstood the effects of a drought and a slowing economy, figures published in its annual report show.
“More information regarding our listing will be made available by our advisers in good time to all shareholders, prospective shareholders and the market,” Kaap Agri Managing Director Sean Walsh said Wednesday in an e-mailed response to questions.
The company, based in Malmesbury, about 65 kilometers (40 miles) north of Cape Town, has increased dividends 34 percent in the five years that ended September, the annual report shows. Its main operations include farming machinery and equipment sales, packaging material manufacturing, and a liquor-store chain. It provides finance products through a network of 12 service offices.
No new companies have started trading on the Johannesburg exchange this year. African Equity Empowerment Investments Ltd., an investment holding company, said Feb. 1 that it will offer shares of its Premier Food & Fishing unit for trading on the JSE. There were 19 listings on the bourse in 2016, including nine on its secondary board.