WeBuyCars is gearing up to raise a whopping R7.8 billion (~$420 million) when it starts trading on the Johannesburg Stock Exchange (JSE) this Thursday. They’ve put out 417,181,120 shares at R18.75 each.
What does WeBuyCars do? Well, it’s like a matchmaker for folks looking to buy or sell used cars. Last year alone, they sold 142,337 cars and bought 141,851. That’s a lot of wheels changing hands!
This move is a big deal for WeBuyCars and for South Africa’s stock market scene. See, there haven’t been many new companies joining the market lately—only 13 in the last three years. So, WeBuyCars hitting the market is like a breath of fresh air.
Now, the big question: Will people buy WeBuyCars’ shares at R18.75 each? Some experts think it’s a good deal. Jimmy Moyaha from Lebowa Capital says it’s a fair price, maybe even a bit low. He thinks the shares could eventually climb to R25 each.
WeBuyCars is also betting big on technology. They’re putting money into AI, data, and analytics to boost online sales. Right now, online sales make up 22% of their business, but they’re aiming to grow that number.
But not everyone is convinced WeBuyCars will be a hit on the stock market. Some analysts are worried about the company’s finances. Even though they’re selling more cars, their earnings dropped by 14% last year. Plus, their cost-to-income ratio went up from 57% to 66%.
So, as the JSE opens on Thursday, all eyes will be on WeBuyCars to see if investors think it’s a good buy or not.
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