Coca-Cola to IPO $8 billion African bottling arm on Johannesburg Stock Exchange (JSE)

Coca-Cola Co. is preparing for a potential initial public offering of its African bottling business, possibly as early as next year.
The company is now contemplating a dual listing for Coca-Cola Beverages Africa in Johannesburg and Amsterdam.
Coca-Cola Beverages Africa is the eighth largest Coca-Cola bottling partner globally in terms of revenue, and it is the largest on the African continent.

In 2021, Coca-Cola first announced its intention to divest a portion of its shareholding in the unit through an IPO. However, the plan was subsequently put on hold.

The company is now contemplating a dual listing for Coca-Cola Beverages Africa in Johannesburg and Amsterdam, sources close to the matter told Bloomberg.

The potential valuation for the business could exceed US$8 billion, according to these sources, who requested anonymity due to the confidential nature of the information.

If listed, the flotation of Coca-Cola Beverages Africa would mark the largest offering on the Johannesburg Stock Exchange (JSE) since at least 2016 and also provide a boost to the struggling index.

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

However, discussions regarding the potential offering are still in the preliminary stages, and the specifics of the offering are subject to change.

A spokesperson for Coca-Cola declined to comment beyond an earlier statement that the company “remains committed to successfully listing Coca-Cola Beverages Africa as a public company via an initial public offering once market conditions become more favourable.”

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Coca-Cola's operations

Coca-Cola Beverages Africa is the eighth largest Coca-Cola bottling partner globally in terms of revenue, and it is the largest on the African continent. It represents about 40% of all Coca-Cola volumes sold in Africa.

The unit currently operates in around 15 African countries, including Kenya, Ethiopia, Namibia, and Tanzania, and boasts a workforce of over 18,000 employees, as indicated on its website.