SaaS firm Karooooo lists on Johannesburg Stock Exchange

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Karooooo CEO Zak Calisto.
Karooooo CEO Zak Calisto.

Global software firm Karooooo has today listed on the Johannesburg Stock Exchange (JSE), becoming the third company on the bourse’s software sub-sector.

The Singapore-headquartered organisation is the controlling shareholder of Cartrack, the previously JSE-listed fleet management and vehicle recovery specialist.

The new listing brings the number of companies listed on the JSE to 331, with a market capitalisation of more than R19 trillion.

Karooooo offers real-time mobility data analytics solutions for smart transportation and serves customers in 23 countries across five continents, supporting more than 1.3 million subscribers as of February.

According to Karooooo’s SENS announcement, it resolved to have its primary listing on the Nasdaq Stock Exchange and a corresponding inward listing on the JSE.

The company believes the restructuring will, among other things, create a more efficient global corporate and operating structure which is reflective of Cartrack’s international operations and global growth strategy.

As part of the restructuring, Cartrack has delisted from the JSE and Cartrack’s eligible shareholders have swapped their old shares for Karooooo shares through a reinvestment scheme.

Zak Calisto, Karooooo CEO, says it is encouraging that 99% of Cartrack’s investors elected to remain invested in the company, highlighting investor confidence in the leadership, business model and investment case.

“Fundamentally, the listing allows us to access capital markets where we were restricted before and enables us to broaden our shareholder base. We are excited about this next chapter of our journey. We are now better positioned for growth.”

Valdene Reddy, JSE director of capital markets, says: “We are pleased the company has decided to remain listed locally, giving investors an opportunity to benefit from Karooooo’s global expansion. We congratulate Karooooo for their successful restructuring and wish the company well in its next chapter of growth.”

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