Clover Industries Ltd, South Africa’s largest dairy supplier, said Fidelity International and Allan Gray Ltd were among the buyers in its oversubscribed share offer raising 575 million rand ($83 million).
“We’re very happy,” said Clover chief executive officer Johann Vorster, who expected to raise about 500 million rand. “The quality of the shareholders is impressive.” Sanlam Ltd and Coronation Fund Managers Ltd. also bought equity prior to the company’s stock exchange listing in Johannesburg on December 14.
Clover sold 54,761,905 shares at R10,50 each, compared with a 9 rand to 12 rand offer range in the private placement, according to a statement yesterday.
The company, which supplies more than a quarter of South Africa’s fresh milk, will use the funds to expand output, reorganise logistics and cut debt.
Clover says it sees opportunities for mergers with other food processors and of buying out minority shareholders from its units.
The company, which also has operations in Botswana and Namibia, is seeking to expand to Angola, Nigeria, Sudan and Kenya, according to its November 29 prelisting statement.
The milk company will consider raising funds after its listing should it find acquisition candidates, Vorster said.
The “strongly oversubscribed” private placement represented 32% of outstanding shares, while milk producers own 12% and directors and management 11%.