1 July 1999: South Africa“s Africa Glass, which will debut on the Johannesburg Stock Exchange on 5 July, plans to raise R 75 million before its listing.
Africa Glass will be one of the larger listin…
1 July 1999: South Africa“s Africa Glass, which will debut on the Johannesburg Stock Exchange on 5 July, plans to raise R 75 million before its listing. Africa Glass will be one of the larger listings on the bourse so far this year, coming to the exchange with a market capitalisation of R 430 million (US$ 72 million). The company said in a statement it would issue 32 million ordinary shares of 235 cents each, by way of a private placing. The money will be used to increase the 18-year-old glass manufacturer, retailer and distributor“s capital base and fund its expansion in Europe and North America. Africa Glass said it expected to double earnings per share to 24.02 cents each in the year to end June 2000 from the 12.01 cents it said it would earn in the 12 months to 30 June 1999. Based on the 235-cent subscription price, it will come to the market on a price/earnings multiple of 19.6. Africa Glass said it had achieved annual compound profit growth of almost 85% since its inception, mostly in a period when the industry was largely dominated by a single integrated glass producer and pricing pressure was severe. “However, since the demise of the industry monopoly, margins and profit growth at Africa Glass have gained significant momentum,” it said. Africa Glass employs 700 people and exports its products to 41 countries. It also has operations in the United Kingdom, Europe and United States.