Coca-Cola Co. is preparing for listings on two stock exchanges, after previously deferring such plans.
According to a report by Bloomberg, the beverage giant is contemplating a dual listing for Coca-Cola Beverages Africa in both Johannesburg and Amsterdam.
The business could be valued at over $8 billion, although specifics of the valuation remain unclear, the sources cautioned, speaking anonymously due to the information’s sensitivity.
Currently, Coca-Cola holds a 66.5% stake in the bottling entity, with Gutsche Family Investments possessing the remaining 33.5%. Discussions are in preliminary stages, and particulars of the offering are subject to change, the informants noted.
The spokesperson for Coca-Cola refrained from providing additional details based on reports, citing the company’s prior affirmation of its intent to list Coca-Cola Beverages Africa once market conditions improve. Meanwhile, representatives for Gutsche Family Investments redirected inquiries to Coca-Cola.
The initial announcement of plans to divest a portion of its stake in the unit via an initial public offer (IPO) came in 2021. However, subsequent developments saw the scheme postponed in the following year.
Coca-Cola Beverages Africa stands as the eighth largest Coca-Cola bottling affiliate globally by revenue, and the largest on the African continent, accounting for approximately 40% of all Coca-Cola sales volumes in Africa.
Last year, during its third-quarter earnings report, the company reiterated its commitment to eventually making Coca-Cola Beverages Africa (CCBA) public, contingent upon more favorable market conditions.
In 2021, the company announced intentions to initiate the listing process for CCBA within an 18-month timeframe, proposing a primary listing in Amsterdam alongside a secondary listing on the JSE.
However, in 2022, Coca-Cola opted to postpone its plans for an estimated $3 billion IPO of CCBA, citing market volatility primarily stemming from the Russia-Ukraine conflict.
This geopolitical tension led to diminished investor confidence and a downturn in IPO activity globally. Had the listing proceeded as planned, the flotation of CCBA would have represented the largest IPO on the JSE since at least 2016, providing a significant lift for the struggling index.