South Africa’s used car enterprise, WeBuyCars, made its debut on the Johannesburg Stock Exchange (JSE) with the ticker “WBC” on Thursday, April 11, 2024. Before its official listing, the firm, which has been in operation for 23 years, had planned to issue 417,181,120 shares in a bid to amass R7.8 billion, which equals around $420 million, as trading began.
The shares of WeBuyCars, owned by Transaction Capital, opened with a per-share value of R20, showing a significant growth from the initial public offering (IPO) price, which stood at R18.75 for each share. This indicated a total market capitalisation of about R8.34 billion, or approximately $444 million, when the market opened.
Faan van der Walt, the CEO of WeBuyCars, said in a recent conversation that the company is looking forward to escalating the number of vehicles it trades from an average of 14,000 each month to around 23,000 by 2029. He expressed pride in the company’s rapid growth and confirmed it has now grown significantly to be listed separately on the Johannesburg Stock Exchange.
WeBuyCars, established in 2001, operates as an intermediary in the buying and selling of pre-owned vehicles. In the year 2023, the company recorded the purchase of 141,851 cars and successfully sold 142,337.
Transaction Capital, WeBuyCars’ parent company which is also listed on the Johannesburg Stock Exchange (JSE), stated that the untying and subsequent listing of WeBuyCars will provide its shareholders direct access to a leading asset in the market.
At present, WeBuyCars boasts a strong workforce of 2,800 employees spread across South Africa, trades pre-owned vehicles via its 15 supermarkets, runs 74 buying pods, and collaborates with over 340 buyers nationwide.
The company’s CEO described the journey towards listing on the JSE as “amazing”. He expressed optimism about the potential opportunities that the listing could bring, such as further strengthening the company’s market prominence, providing liquidity for its shareholders, and attracting talented individuals into the company.
In response to the addition of WeBuyCars on the Johannesburg Stock Exchange (JSE), Valdene Reddy, the Director of Capital Markets at the JSE, expressed delight at having a new company on the exchange this year.
Data from JSE reveals that WeBuyCars represents the second company to be listed on the South African exchange this year, with only three others making a debut since 2019. This pushes the total number of companies on JSE to 283, all with a combined market cap of R18.4 trillion.
Reports suggest that the JSE aims to list around 10 more companies in the year 2024. These include Cilo Cybin Holdings, a cannabis firm, which is scheduled to be listed the day after WeBuyCars on April 12. Other firms in the pipeline for listing later in the year include Coca-Cola Beverages Africa, which has been waiting for three years, Boxer owned by Pick n Pay Stores, and Rainbow Chicken, a business under RCL Foods.
