South Africa’s Dis-Chem Pharmacies has raised 4.4 billion rands ($310 million) in a share placement ahead of its listing on the Johannesburg Securities Exchange, valuing the chain at almost 16 billion rands.
The company will use the proceeds of the offer to repurchase shares from existing shareholders, for the repayment of the company’s debt and general corporate purposes.
Dis-Chem received 18.50 per share, the middle of its offer range, for a 27.5 percent stake in the business which was traded on the bourse from November 18.
The pharmaceutical company tapped an uncertain equity market as it looks to take on larger rival Clicks Group and retailers Shoprite and Pick n Pay, which also has pharmaceutical retail operations.