Dis-Chem attracts billions ahead of Friday's listing

PUBLISHED: Tue, 15 Nov 2016 17:35:49 GMT

JOHANNESBURG (Reuters) – South Africa’s Dis-Chem Pharmacies has raised 4.4 billion rand ($310 million) in a share placement ahead of its listing on the Johannesburg Securities Exchange, valuing the chain at almost 16 billion rand, the firm said on Tuesday.

Founded by chief executive Ivan Saltzman and his wife Lynette, Dis-Chem has tapped an uncertain equity market as it looks to take on larger rival Clicks Group and retailers Shoprite and Pick n Pay, which also have pharmaceutical retail operations.

Dis-Chem, which will trade on the bourse from Nov. 18, said it had received 18.50 per share – the middle of the range of its offer – for a 27.5 percent stake in the business.

Dis-Chem said it 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.

($1 = 14.1805 rand)

(Reporting by TJ Strydom, editing by Louise Heavens)

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