The IPO will be initiated within 18 months depending on number of factors such as macroeconomic conditions
With an aim of focusing its resources on building consumer-loved brands and innovation, Coca-Cola Beverages Africa (CCBA) along with the Coca-Cola Company have revealed plans on registering CCBA as a publicly traded firm via an initial public offering (IPO).
The Coca-Cola Company is looking to sell a part of its holding in CCBA, while the two companies orchestrate on initiating an IPO within 18 months. Importantly, the precise timing for the IPO will be conditioned to number of factors such as macroeconomic conditions.
Shares will be listed in Johannesburg and Amsterdam, with Amsterdam being the primary exchange. Initiating an IPO will enable CCBA to operate as an independent, South African-headquartered, Africa-focused, managed business. The plans exhibits The Coca-Cola Company’s long-term, continued belief and commitment to Africa and the leadership of CCBA in South Africa.
In a statement, Bruno Pietracci, President, The Coca-Cola Company, Africa, said that their business perceives Africa as a key growth market and views the IPO listing of CCBA as an opportunity to deliver a long-term, broad, and supportive investor base for its ongoing business development.
Highlighting the benefits of going public, CEO of CCBA, Jacques Vermeulen said that publicly listing CCBA will enable the company to expand on its growth trajectory and gain access to capital independently, consequently meeting the investment needs of the business, an aspect crucial for stakeholders across Africa.
Reportedly, CCBA stands out as the 8th biggest Coca-Cola unit in terms of revenue worldwide. The unit accounts for 40% of all Coca-Cola products that are sold in Africa as per volume. Currently with over 16,000 employees, CCBA offers services to millions of customers, with a host of local and international brands.