Coca Cola has postponed its estimated $3 billion initial public offering (IPO) for its African bottling to the third quarter of this year, after market turmoil linked to the war in Ukraine upset plans to list earlier in this second quarter.
The flotation of Coca-Cola Beverages Africa (CCBA) would be the biggest on the Johannesburg Stock Exchange since at least 2016.
As Reuters reports, Russia’s invasion of Ukraine has shaken investor confidence and contributed to a plunge in volumes of IPOs in Europe, the Middle East and Africa as rising commodity prices and disrupted supply chains undermine growth and call valuations into question.
Even before the Ukraine war, the JSE, which is worth just over a $1 trillion, struggled to attract new IPOs, because of the weakness of South Africa’s economy. Companies have instead opted for listings in London or Amsterdam. Some 45 companies have exited the exchange in the last two years.
The company holds 66.5% of Coca-Cola Beverages Africa.
The Coca-Cola Beverages Africa business serves 13 countries, including Kenya, Ethiopia and Ghana. It accounts for about 40% of the company’s drinks sold on the continent.
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