Cartrack’s CEO and founder Isaias Calisto said he was content with the opening price. “I think the value is much higher, but the market will sort it out.” Cartrack retains 80% of the shareholding and will only consider releasing more than 20% if the price goes beyond R12 a share.
“Getting it here was perhaps the most difficult part. Now we’re going to focus on the growth of the business.
“This followed a capital raising of R510 million “through a private placement of shares with local and international institutional and retail investors, giving Cartrack a market value of R2.55 billion at listing,” according to a statement.
The company is the first to list in the business support sector this year – joining 15 other companies. Its listing came at an opportune time, said Donna Oosthuyse, JSE Capital Markets Director, following the JSE’s biggest trading day ever – with a record value of R53.7 billion – 41% higher than the JSE’s previous record.
She added there had been 23 listings (on the main board) this year – something the JSE had not seen since 2007. JSE business development manager Tamsin Freemantle said Cartrack would probably be the last company to list on the JSE this year.
Calisto said fleet management constituted more than 50% of Cartrack’s business and he estimated this would increase to 55% by February 2015. He estimated its unit sales would reach about the region of 435 000.