HomeChoice listing chasing Africa growth

Online retailer HomeChoice Holdings plans to start trading on Johannesburg’s stock exchange as it seeks to expand on the continent outside its home market.

A newly formed holding company, HomeChoice International, will debut on the main board of the JSE on December 4, the Cape Town-based retailer said yesterday.

While HomeChoice doesn’t plan to raise capital, access to public markets provides an additional source of funding, according to CEO Shirley Maltz. “Expansion into the rest of Africa presents a major growth opportunity for our business in the medium to long term,” Maltz said.

“Creating an international holding company will enable faster and more efficient allocation of capital to accelerate our growth in Africa.”

International retailers and technology companies are expanding in Africa to take ad- vantage of rising incomes and adoption of internet connections through smartphones.

HomeChoice already operates in Botswana, Lesotho, Namibia, Swaziland and Zambia. Customers in these African countries account for almost 12% of HomeChoice’s retail sales, the company says.

HomeChoice may start share trading at an indicative price of R29.4, valuing it at R2.96 billion.

Other new entrants on the JSE’s market this year include retirement-fund administrator Alexander Forbes, cannedgoods maker Rhodes Food Group and poultry company Quantum Foods. HomeChoice International would be based in Malta to ease restrictions on capital flows, the company said.

Existing shareholders, including Malta-based GFM Holdings, will vote on November 24 on an offer of one share in HomeChoice International for each HomeChoice Holdings share. –