U.S. Coca-Cola Plans $8B IPO for African Bottling Unit

Coca-Cola Co., a U.S. beverages giant, is gearing up for a potential initial public offering (IPO) of its African bottling business, Coca-Cola Beverages Africa, with a potential valuation exceeding $8 billion. The company is considering a dual listing for Coca-Cola Beverages Africa in Johannesburg, South Africa, and Amsterdam, Netherlands. This move follows Coca-Cola's 2021 announcement of its intention to divest a portion of its shareholding in the unit through an IPO, a plan previously put on hold. Coca-Cola currently holds a 66.5 percent stake in the bottling unit, with the remaining 33.5 percent owned by Gutsche Family Investments. Discussions regarding the potential offering are still in preliminary stages, and specifics are subject to change.

Coca-Cola Beverages Africa, the eighth largest Coca-Cola bottling partner globally by revenue, represents about 40 percent of all Coca-Cola volumes sold in Africa. Headquartered in Johannesburg, South Africa, the unit operates in approximately fifteen African countries, including Kenya, Ethiopia, Namibia, and Tanzania, with a workforce of over eighteen thousand employees. If listed, the flotation of Coca-Cola Beverages Africa would mark the largest offering on the Johannesburg Stock Exchange since at least 2016, providing a potential boost to the struggling index.