Milbank Advises Boxer Retail Limited on Africa’s Largest IPO in 2024 

Milbank LLP advised Boxer Retail Limited and its parent company, Pick N Pay Stores Limited, in connection with Boxer’s initial public offering (IPO) and Johannesburg Stock Exchange (“JSE”) listing. The Boxer shares priced at ZAR54.00, at the top of the price range, raising gross proceeds of approximately ZAR8.5 billion (assuming the exercise of the overallotment option) and valuing Boxer at approximately ZAR24.7 billion. The Boxer IPO was the largest IPO in Africa this year and the largest IPO on the JSE since 2017. 

The Boxer IPO was the second and final step of Pick N Pay’s two-step recapitalization plan, which was announced in March 2024 and included a rights offering as the first step. The recapitalization plan, which was completed in just nine months, received strong shareholder support. The Pick n Pay rights offering raised ZAR4.0 billion in August 2024 (“Milbank Advises Pick n Pay on Its ZAR4 Billion Rights Offering”). The capital raised through both transactions will enable Pick n Pay to repay debt and to invest in its turnaround strategy, including new stores and store refurbishments, product range development, technology and innovation, and staff training. 

Pick n Pay is one of South Africa’s leading multi-format and omni-channel retailers, operating on an owned and franchise basis. Pick n Pay operates a flexible and diverse portfolio of stores and online platforms, providing a broad food, grocery, liquor, general merchandise, clothing and value-added services offer across eight countries on the African continent. Pick n Pay, which is headquartered in Cape Town, has a portfolio of 1,484 company-owned stores and 722 franchise stores.

Boxer has a 47-year history and is South Africa’s fastest growing supermarket chain over the past few years, with a leading market share of the discount market. Boxer provides a focused range of quality affordable products and services to customers in the lower- to middle-income urban, peri-urban and rural South African and Eswatini communities. Boxer’s three store formats include 300 company-owned Boxer Superstores, 159 Boxer Liquors and 30 Boxer Build stores.

The Milbank team was led by Corporate Finance and Securities partner David Dixter and associates Kristian Sutt and Panos Tsezos. The Milbank team also included New York Tax partner Andrew Walker and associate Michelle Song, and New York Alternative Investments partner Catherine Leef Martin. The team was also assisted by legal assistant Olga Maria Efstathiou.