The Coca-Cola Company Monday announced plans to list Coca-Cola Beverages Africa (CCBA) as a publicly-traded company.
The beverage giant said it plans to conduct the IPO within the next 18 months, subject to a number of factors, including macroeconomic conditions. Shares will be listed in Amsterdam and Johannesburg, with Amsterdam being the primary exchange.
The decision is in line with The Coca-Cola Company’s objective of focusing its resources on building consumer-loved brands and innovation.
Coca-Cola Co.’s sales beat expectations in the first quarter as the soda maker said it saw early, though uneven, signs of recovery in demand, particularly in areas with stronger rates of vaccination against Covid-19.
“We are encouraged by improvements in our business, especially in markets where vaccine availability is increasing and economies are opening up,” Chief Executive Officer James Quincey said in a statement.
The IPO will allow CCBA to operate as an independent, Africa-focused, South African-headquartered, managed, and domiciled business. The plans underscore The Coca-Cola Company’s continued and long-term belief and commitment to the African continent and the leadership of CCBA from South Africa.
“The Coca-Cola Company sees Africa as a key growth market and views a separate listing of CCBA as an opportunity to deliver a broad, supportive, long-term investor base for the ongoing development of the business,” said Bruno Pietracci, president of the Africa operating unit of The Coca-Cola Company.
“A standalone listing for CCBA will enable the bottler to build on its growth trajectory and access capital independently to meet the investment needs of the business, which is great for stakeholders across Africa,” said Jacques Vermeulen, CEO of CCBA.