Coca-Cola Plans Potential IPO for African Bottling Business in 2025

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According to Bloomberg News, Coca-Cola (KO.N) is reportedly preparing for a potential initial public offering (IPO) of its African bottling business as early as next year.

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Sources familiar with the matter suggest that the company may seek a valuation exceeding $8 billion for this venture. However, the deliberations are in their preliminary stages, and the specifics of the offering could undergo changes before finalization.

When approached by Reuters for comment, Coca-Cola declined to provide any statement on the matter.

The decision to pursue an IPO for Coca-Cola Beverages Africa (CCBA) aligns with the company’s previous statements during its third-quarter earnings report last year.

At that time, Coca-Cola affirmed its commitment to listing CCBA as a public entity once market conditions become more favorable. Initially, the company had announced plans to list CCBA within 18 months, with Amsterdam as the primary listing venue and a secondary listing on the Johannesburg Stock Exchange (JSE).

However, in 2022, Coca-Cola postponed its estimated $3 billion IPO of CCBA due to market turbulence stemming from the Russia-Ukraine conflict. The upheaval in the market led to wavering investor confidence and a downturn in global IPO activity.

If the IPO proceeds as planned, it would mark a significant milestone for the JSE, potentially becoming the largest flotation on the exchange since at least 2016.

This move could provide a much-needed boost to the struggling index.


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