Mobile operator Cell C raises R2.7bn ahead of listing

The offer, which closed on 21 November, priced shares at R26.50 each, below a previously set range of R29.50-R35.50, valuing the company at roughly R9bn.

About 102 million shares, representing 30% of Cell C's issued ordinary shares, were sold by The Prepaid Company (TPC) to selected qualifying investors, the company said on Monday, 24 November.

Trading on the JSE is expected to start on Thursday, 27 November.

Cell C said the listing will reinforce its commitment to South Africa's transformation agenda, with Broad-Based Black Economic Empowerment (B-BBEE) ownership exceeding the required 30% threshold at admission.

Sisonke Growth Partners, a special purpose BEE vehicle, will hold 15.95% of the company. Cell C will also have direct flow-through historically disadvantaged persons (HDP) ownership from TPC's remaining stake in the operator of about 15%, plus 1% HDP ownership through the executive transfer scheme, it added.

TPC and Cell C have agreed to 360-day lock-up arrangements on their shares, while the BEE special vehicle will be subject to a six-year lock-up, with limited disposals allowed after the first year under strict conditions.

Cell C said the measures aim to ensure long-term equitable participation and compliance with licensing requirements.

Before the offer, TPC, a subsidiary of Blu Label Unlimited, held a 59.66% stake in the mobile operator.