WeBuyCars Debuts on JSE, Marks First of Anticipated Listings in 2024

WeBuyCars, the prominent player in Transaction Capital’s used car business, made its highly anticipated debut on the Johannesburg Stock Exchange (JSE), heralding the commencement of what promises to be a bustling year of listings. The stock opened for trading at R20 per share, surpassing its initial public offering price of R18.75 per share.

The successful listing of WeBuyCars comes as a welcome boost for the JSE, which has grappled with a dearth of new listings in recent years. The momentum is set to continue with the impending listing of cannabis firm Cilo Cybin Holdings on April 12, adding to the growing roster of offerings.

Among the standout listings slated for later this year is Coca-Cola Beverages Africa, a highly anticipated move that has been deferred for three years due to challenging market conditions. The plan includes a primary listing on Euronext, with a secondary listing on the JSE, underscoring the company’s strategic approach to accessing capital markets.

Furthermore, market watchers are keenly awaiting the spin-off of Pick n Pay Stores’ discount supermarket chain Boxer, as well as RCL Foods’ intended carve-out of its Rainbow Chicken business.

Faan van der Walt, CEO of WeBuyCars, expressed optimism about the company’s growth trajectory, aiming to increase the volume of traded vehicles from approximately 14,000 to 23,000 per month within the next four to five years. He emphasized the sustained rapid expansion of WeBuyCars, citing its substantial market presence as justification for a separate listing.

In preparation for the listing, WeBuyCars and Transaction Capital collectively raised R902.7 million in capital, with WeBuyCars selling 40 million shares for R750 million and Transaction Capital divesting 8.145 million WeBuyCars shares for approximately R152.7 million. As of the listing date on April 11, the total market capitalization for WeBuyCars stood at an impressive R7.8 billion, based on a final tally of 417.2 million ordinary shares.

Founded in 2001 as a family-owned enterprise, WeBuyCars has evolved into South Africa’s premier pre-owned vehicle trader, capturing a market share ranging from 10% to 12%. With a robust monthly turnover of around 13,500 vehicles, the company’s listing marks a significant milestone in its journey of growth and market leadership.