Zeda Limited, an integrated mobility solutions provider, listed its shares yesterday on the main board of the JSE after unbundling from Barloworld in November.
Zeda’s shares yesterday traded at the start of the day at R18, but by 4pm were at R16.69, 7.28% lower.
In an interview, Zeda’s CEO, Ramasela Ganda, said: “I’m very emotional… Today is a day of mixed emotion. Leaving Barloworld after so many years, it’s tough, but also it’s exciting. The possibility that lies ahead of us and that people can now invest directly in Zeda.”
She said Zeda was led by an experienced management team who were committed and worked very hard through the unbundling process, but at the same time, delivering exceptional returns.
“To do what we’ve done in a short period, recovering our business from the Covid-19 pandemic. Stabilising, and putting the company on a growth path has been exceptional, and it’s because of the leadership that I work with – a good, incredible set of men and women who are just brilliant,” Ganda said.
The company, which has long-term license agreements to operate the car rental brands Avis and Budget, said this would allow investors to add to their portfolios a company at the forefront of mobility in Southern Africa.
Barloworld unbundled Zeda as part of its strategy to create a business-to-business operating model focused on industrial equipment and services and consumer industries.
According to the company, as a listed standalone business, Zeda would benefit from having its own dedicated executive management team and board of directors, who will oversee the company’s growth and expansion.
Zeda has been operating for 55 years and has a presence in 11 African markets including Botswana, Ghana, Lesotho, Mozambique, Namibia, Zambia, and South Africa, its home market.
The company, in its maiden annual financial results, said it employs more than 1 700 people and its fleet management and leasing business manage just more than 250 000 vehicles.
“For the year ended September 30, 2022 Zeda increased its revenue by 6.6% to R8.1 billion, of which 65% was generated from annuity contracts, protecting the company against cyclicality.
“Overall fleet utilisation was 79%, and the return on equity was 32.7%,” it said.
The JSE said Zeda’s listing increased the number of listed companies on the bourse to 305, with an overall market capitalisation of more than R21.84 trillion.
“It is anticipated that following the listing of Zeda, about 58.42% of the company’s shares would be held by public shareholders. The company issued 189.6 million shares when it listed,” it said.
Valdene Reddy, the JSE director of capital markets, said she was delighted by the listing of Zeda, which would give South African investors exposure to a company with strong growth potential.
“This year, the JSE has seen a growth in listings, not just listings of companies, but also the issuance of a wide range of securities including bonds and ETFs.
“As we close 2022, we are confident that the JSE will continue to attract new issuers next year, as companies bolster their efforts to raise capital to finance their growth,” Reddy said.
BUSINESS REPORT