WeBuyCars, a company that deals with used vehicles in South Africa, has listed under the share code “WBC” on the Johannesburg Stock Exchange (JSE) this Thursday, April 11, 2024.
WeBuyCars issued 4.17 million shares at a price of R20 each, which is higher than the initial public offering price (IPO) of R18.75 per share and represents approximately R8.34 billion ($444 million) in market value at the commencement of share trading.
JSE has a total number of 283 companies on its list with a market capitalization of R18.4 trillion, and WeBuyCars joined as the second listing this year.
WeBuyCars was established in 2001 to provide an easy method of selling used vehicles with efficiency and trustworthiness. The family-owned business has become a company that owns 10% to 12% of South Africa’s market share and is targeting about 23% by 2028. WeBuyCars recorded a purchase and sales of 141,851 and 142,337 vehicles, respectively, in 2023.
Faan van der Walt, WeBuyCars CEO, expressed the company’s joy over the listing on JSE and how amazing the journey was. “The listing opens up many opportunities such as enhancing our brand, creating liquidity for shareholders, and attracting staff,” he added.
WeBuyCars has 2,800 staff across South Africa, trades vehicles from 15 supermarkets, owns 74 buying pods, and with over 300 buyers nationwide. WeBuyCars plans to increase its trade volume from 14,000 vehicles per month to about 23,000 vehicles.
We are delighted to welcome WeBuyCars to the JSE and to see a new listing for the year. The company’s decision to unbundle and list on our exchange demonstrates the strength of the South African capital markets, as well as the JSE’s role in enabling businesses to pursue expansion opportunities by providing direct access to a well-established equity market,” said Valdene Reddy, Director of Capital Markets at the JSE.
Cilo Cybin Holdings, a cannabis firm, is also expected to be listed this April, and about ten more businesses later this year on the JSE. It serves as a boost for JSE, which has suffered listing since 2019 with only three listings.
