Coca-Cola Contemplates $8B IPO For African Bottling Unit: Report

Author: Shivani Kumaresan | April 30, 2024 07:40am

Coca-Cola Co (NYSE:KO) is reportedly preparing for a potential public offering of its African bottling arm, which had previously been postponed. 

The company is considering a dual listing for Coca-Cola Beverages Africa in Johannesburg and Amsterdam, aiming for a business valuation exceeding $8 billion, according to a report from Bloomberg, citing sources familiar with the matter.

Currently, Coca-Cola holds a 66.5% stake in the bottling unit, with the remaining 33.5% owned by Gutsche Family Investments. 

Discussions regarding the IPO are in early stages, and specifics of the offering might undergo alterations, noted the report.

Coca-Cola spokesperson reportedly refrained from detailed comments, reiterating commitment to the IPO plan when market conditions improve.

Also Read: Coca-Cola Q1 Earnings Preview: Will Beverage Giant Beat Revenue Estimates For 13th Straight Quarter?

In 2021, Coca-Cola initially declared its plan to divest a portion of its shareholding in the unit through an IPO, but the initiative was postponed the subsequent year.

Coca-Cola Beverages Africa ranks eighth among Coca-Cola bottlers globally by revenue and dominates African markets, the report added.

The unit covers approximately 15 African countries, including Kenya, Ethiopia, Namibia, and Tanzania, employing over 18,000 individuals.

Coca-Cola stock lost more than 3% in the last 12 months. Investors can gain access to the stock via Vanguard Total Stock Market Index Fund ETF (NYSE:VTI) and IShares U.S. Consumer Staples ETF (NYSE:IYK).

Read Next: Food Giants Pivot To Discounts And New Sizes Amid Decreased Spending by Low-Income Americans

Price Action: KO shares are trading lower by 0.47% at $61.75 in premarket at the last check Tuesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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Posted In: IYK KO VTI