Holdsport to list on JSE in July

The company is due to be listed in the Apparel Retail Sector on the main board of the JSE under the abbreviated name Holdsport with symbol HSP.

The company said Monday, 27 June, that the offer was not open to the general public and would only be open to selected investors. A total of 42.857 million ordinary shares would be listed, of which up to 30 million ordinary shares (70%) would be sold in the book build process.

During the book build process the ordinary shares would be offered at a price range of R31-39. However thereafter the share price may be outside of this range. UBS is the sole financial adviser and bookrunner for the listing

Holdsport operates from a national store network of 18 Sportsmans Warehouse and 33 Outdoor Warehouse stores across South Africa. The stores are mostly located in value centres in recognised retail nodes in prime locations throughout the country.

It also has a strategic investment in independently managed First Ascent. The company has grown from 38 stores at the end of fiscal 2007 to 51 stores in South Africa and one Sportsmans Warehouse in Namibia in June 2011.

CEO Kevin Hodgson said the company's strength in this attractive retail market positions us well for continued growth.

"Holdsport's key competitive strengths include our differentiated merchandising and value for money product range. We have an attractive and loyal customer base who like the distinctive retail experience and diverse range of products. Holdsport has compelling store economics, a proven track record of delivering profitable growth and operational excellence and an experienced management team who believe in and are committed to the business."

"Holdsport is a seasonal business with the majority of earnings coming through in the second half of the financial year - December and January are Holdsport's most important trading months. Holidays are important trading periods for both Sportsmans Warehouse and Outdoor Warehouse. However, the timing of the 2011 holidays is very different to the previous financial year, and so first half trading this year will be less comparable," he added.

Future growth would be achieved through a focus on increasing turnover from existing stores and expanding store numbers, with a potential to open 3 to 5 new stores per annum in the medium term. Growth is expected to be supported by the recovery in the South African economy.