JSE gains a new diversified retailer, CA Sales Holdings – Who are they?

CA Sales Holdings listed on the JSE's main board on Monday, floating 461.4 million shares.

CA Sales Holdings listed on the JSE’s main board on Monday, floating 461.4 million shares. Getty Images

  • CA Sales Holdings listed on the JSE’s main board on Monday, floating 461.4 million shares.
  • It anticipates that its initial market capitalisation will be about R2.2 billion.
  • It’s a small but fast-growing company with plans to grow its revenues from R8 billion in 2021 to R20 billion by 2026.

As one of its big shareholders, the PSG Group, prepares to exit the JSE, CA Sales Holdings joined the JSE’s on the main board on Monday.

The Mouton family-founded PSG company indicated earlier this year that it planned to move CA Sales’ dual primary listing from the Cape Town Stock Exchange to the JSE this June.

The company finally blew the JSE’s kudu horn on Monday morning. The company, which will fall under diversified retailers, anticipates an initial market capitalisation of about R2.2 billion. It has floated 461.4 million shares on the JSE’s main board.

“We look forward to our dual listing on the JSE and Botswana Stock Exchange (BSE), raising the profile of our group with South African-based retail and institutional investor community,” said CA Sales CEO Duncan Lewis.

The JSE’s director of capital markets, Valdene Reddy, said this new listing positively reflected the country’s main bourse’s efforts to bulk up listings. As the exchange bled listings in the past few years, the JSE promised to do some damage control by ramping up efforts to attract foreign companies to consider secondary listings in SA. It is also working on relaxing listing rules.

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“We are committed to growing the attractiveness of our listed markets. In so doing, we have embarked on a journey to improve the ease and appeal of listings through various regulatory and product proposals in efforts to attract issuers and investors to our exchange,” said Reddy.

Who is CA Sales Holdings?

The company was first incorporated in South Africa in 2011. It offers merchandising, warehousing, distribution and various other services to companies in fast-moving consumer goods (FMCG). It now has a footprint in several Southern African countries. These include Swaziland, Namibia, Lesotho, Zimbabwe, Mozambique, Zambia and Botswana, where it is also listed.

CA Sales owns companies like Red Bull Distribution in Zimbabwe and the African distributor for Diageo and Heineken.

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It’s a small company which generated just over R8 billion in revenue in 2021. But it has big ambitions. In its presentation to investors this June, CA Sales said its targets are to reach R10 billion and R20 billion by 2026. That is a compounded annual growth rate of more than 20% over a five-year period.

The company has delivered that in the past. Between 2013 and 2018, the compounded annual growth rate of CA Sales’ revenue stood at 23.7%.

It is a fast-growing company. For instance, it was generating half the revenues it reported in 2021, five years earlier, and so we its headline earnings per share. In 2021, its headline earnings and earnings per share went up by 17.1% and 16%, respectively.

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