South Africa-based WeBuyCars debuted on the main board of the Johannesburg Stock Exchange (JSE) on April 11 with a market capitalization of ZAR7.8 billion ($414 million U.S.) at the offered price.

WeBuyCars issued 417 million ordinary shares priced at ZAR20 apiece, above its IPO price of ZAR18.7/share.

JSE-listed holding company Transaction Capital expressed its intention to separately list WeBuyCars due to “its unique market positioning” in December 2023.

Founded as a family business in 2001, WeBuyCars is a hybrid used-car trader with 2,800 employees. It operates 15 “supermarkets” and 74 “buying pods,” in addition to buying and selling cars online. Apart from cars, it also buys and sells motorcycles, caravans, trailers and boats.

“It has been an amazing journey that culminated in a listing on the JSE,” said WeBuyCars CEO Franz van der Walt.

“We are excited about the road ahead, as the listing opens up many opportunities, such as enhancing our brand, creating liquidity for shareholders and attracting staff.”

WBC says it buys and sells 14,000 used cars a month and has a 12% market share. It wants to raise the volume to 23,000 cars a month and its market share to 23% within the next four to five years.

As announced previously, WeBuyCars and Transaction Capital also raised ZAR750 million for 40 million shares and ZAR152 million for WBC’s 8.1 million shares, respectively, following a bookbuilding process.

In 2020, South Africa’s competition authority blocked an attempt by Naspers — the majority shareholder in marketplace operator Prosus NV — to buy a 60% stake in WeBuyCars.

Prosus runs, the leading auto marketplace in South Africa, in addition to recruitment marketplace and real estate marketplace

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