Cell C has significantly cut the offer price for its upcoming listing on the Johannesburg Stock Exchange (JSE), reducing its expected market capitalization by hundreds of millions of Rands.
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In an update to investors on Friday, Blu Label Unlimited Group, Cell C’s largest shareholder, confirmed the final offer price for the private placement has been set at R26.50 per share.
The final price is a clear reduction from the initial indicative range of R29.50 to R35.50 per share, which was published on November 13.
- Final Offer Price: R26.50/share
- Original Indicative Range: R29.50 to R35.50/share
- Estimated Market Cap: Approximately R9 billion (based on 340 million ordinary shares in issue).
- Original Valuation Implication: R9.5 billion to R12.1 billion.
The price cut—trimming as much as R3.50 off the bottom of the original range—translates to a roughly R1-billion to R3-billion reduction in Cell C’s hoped-for valuation.
News of the lower valuation immediately impacted Blu Label’s share price, which was trading down 5.7% at R9.90 shortly after the announcement.
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The listing is part of a broader restructuring effort by Blu Label, positioning the transaction as a way to streamline Cell C’s balance sheet and support its turnaround strategy.
- Over-Allotment Option Removed: A key change is the removal of the over-allotment option (up to 9.52 million shares) originally granted by Blu Label. With the lower final price of R26.50, Blu Label confirmed it no longer intends to over-allot any shares.
- Bookbuild Extension: To allow institutional investors to review their orders in light of the reduced price, the company extended the bookbuild until 4 pm on Friday, November 21, 2025.
- JSE Listing Date: Cell C shares are scheduled to begin trading on the JSE next Thursday.
For Blu Label, which had previously cited the Cell C listing as a major catalyst for unlocking shareholder value, the reduced offer price is a concession to market realities. However, it ensures the long-planned listing stays on track, albeit with a more modest valuation than initially anticipated.
