Boxer Retail Eyes 7,393 ZAC After R8.5B IPO—SA’s Biggest Since 2017

Boxer Retail Ltd has made history in South African corporate history with a blockbuster listing on the JSE on November 28, 2024. The company raised R8.5 billion in what is now the biggest IPO since 2017. Shares opened at R54 and closed at R63.51 on debut, up 17% and taking Boxer’s market cap to R24.7 billion.

This listing solidifies Boxer’s position within the Pick n Pay group which still holds 65.6% of the company. With a forward P/E of around 20, Boxer is seen as a high growth, value play in the evolving South African retail landscape.

Expansion Targets Underserved Regions

Boxer has over 500 stores in South Africa and Eswatini and has a 68% share of the local discount grocery market. The company plans to open 60 to 70 new stores a year and double its footprint in 7 years. These new stores will be in rural and peri-urban areas to tap into the estimated R105.5 billion in unserved grocery spend.

Key Expansion Highlights:

• Add 60-70 stores a year

• Double store count in 7 years

• Focus on underserved high growth regions

Technical Setup Points to Bullish Continuation

From a technical perspective Boxer Retail (JSE: BOX) is now trading at the 7,000 ZAC level just below the wedge top. After rebounding off the 0.5 Fibonacci at 6,701 ZAC and taking out the 50 EMA (6,744 ZAC) momentum is now bullish. The MACD has a clean crossover and is looking for a breakout.

If BOX breaks above 7,098 ZAC on good volume a retest of the March high at 7,393 ZAC looks likely. But if it fails to clear resistance it could pull back to 6,701 ZAC.

Technical Trade Setup:

• Buy: Above 7,098 ZAC

• Target: 7,393 ZAC

• Stop-Loss: Below 6,744 ZACThis wedge breakout is a great entry for trend followers looking to get into one of South Africa’s best retail stories.

Financials Bolster Pick n Pay’s Plan

Boxer’s performance is also a boost for Pick n Pay which used the R8.5 billion raised to reduce debt and invest in operational improvements. For investors Boxer’s IPO is a sign of renewed confidence in South Africa’s retail recovery especially in discount formats that cater to price sensitive consumers.

With a lean cost structure, strong store economics and clear expansion runway Boxer Retail is not just a post IPO winner but a long term player in the shaping of value retail in South Africa.