Investors don’t bite at Gold Brands
Gold Brands became the third company to list on the JSE this year on Friday, but investors didn’t immediately take a bit out of its stock.
|||Johannesburg - Gold Brands became the third company to list on the JSE this year on Friday, but investors didn’t immediately take a bit out of its stock.
The company, which opened at R2, was trading at R1.11 by mid-afternoon, as investors showed a lack of appetite for the fast food company.
Trading under the share code, GBI first announced its intention to list at the end of November last year. Today, its CEO Praxia Nathanael said the listing would add value to its shareholders, including its empowerment partners, and would give the “man in the street” a chance to access a fast food share with operations in SA and Africa.
The company is home to brands such as Chesa Nyama, 1+1 Pizza, Opa!Pitaland, Chicken Wild Wings and the much-loved but seldom seen Blacksteer.
Gold Brands says it is the only fast food company listed on the AltX. The other two listings this year were AB InBev on the main board and Newpark Reit on AltX.
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The company, founded as Franchising to Africa in 2012, established its flagship brand, Chesa Nyama, with its first store at Wits University in 2012 and grew to a current total of 289 stores in three years, creating more than 3 000 jobs.
Gold Brands expects to have rolled out 320 stores by the end of February 2016.
The company also notes it has its own food services distribution, in-house butchery and sauce manufacturing facilities.
Nathanael notes at the end of November that the company’s goal is to “be leading franchise company in South Africa and international markets with our unique brands, while being committed to building wealth creation opportunities for our franchisees, of whom 85 percent are from previously disadvantaged backgrounds”.
The JSE has a market capitalisation of R14.7 trillion, while the value of all the companies combined on the AltX is R34.4 billion.
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