Karooooo Ltd. Announces Pricing of Initial Public Offering

Rhea-AI Summary

Karooooo Ltd. announced its initial public offering, pricing 1,050,000 ordinary shares at $28.00 each, aiming for $29.4 million in gross proceeds. The underwriters can purchase an additional 157,500 shares. Trading on the Nasdaq under the symbol KARO begins on April 1, 2021, with the offering expected to close by April 6, 2021. Morgan Stanley and BofA Securities are the lead book-running managers. Karooooo provides telematics solutions, serving over 1.3 million subscribers worldwide, as of February 28, 2021.

Positive

• Initial public offering gross proceeds of approximately $29.4 million.
• Opportunity for underwriters to purchase an additional 157,500 shares.
• Established customer base of over 1.3 million subscribers across 23 countries.

Negative

• Potential dilution of shares due to additional offering by underwriters.

SINGAPORE, April 1, 2021 /PRNewswire/ -- Karooooo Ltd. ("Karooooo") today announced the pricing of its initial public offering of its ordinary shares. Karooooo is issuing and offering 1,050,000 of its ordinary shares at an initial public offering price of $28.00 per ordinary share for total gross proceeds of approximately $29.4 million. In addition, the underwriters of the initial public offering have an option to purchase up to an additional 157,500 ordinary shares from Karooooo. The shares are expected to begin trading on the Nasdaq Capital Market on April 1, 2021 under the symbol "KARO." The offering is expected to close on April 6, 2021, subject to customary closing conditions.

Morgan Stanley and BofA Securities are acting as lead book-running managers for the offering. William Blair is acting as book running manager, and Canaccord Genuity, Raymond James and Stifel are acting as co-managers for the offering.

The offering is being made only by means of a prospectus. A copy of the final prospectus relating to the offering, when available, may be obtained from: Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, Second Floor, New York, New York 10014; or BofA Securities, Attention: Prospectus Department, NC1-004-03-43, 200 North College Street, 3rd Floor, Charlotte, NC 28255-0001, or by email at dg.prospectus_requests@bofa.com. 

A registration statement relating to these securities has been filed with, and declared effective by, the Securities and Exchange Commission. Copies of the registration statement can be accessed through the SEC's website at www.sec.gov. This press release does not, and is not intended to, constitute an offer to sell or a solicitation of an offer to purchase any securities in the United States or elsewhere, and it does not, and is not intended to, constitute an offer, solicitation or sale of any securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful.

About Karooooo
Karooooo, headquartered in Singapore, is a leading global provider in the telematics industry that offers real-time mobility data analytics solutions for smart transportation.  Karooooo serves customers in 23 countries across five continents, supporting more than 1.3 million subscribers as of February 28, 2021.

Media Contact
media@karooooo.com

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SOURCE Karooooo

FAQ

What is the initial public offering price for Karooooo shares?

The initial public offering price for Karooooo shares is $28.00 each.

When will Karooooo's shares start trading?

Karooooo's shares are expected to begin trading on the Nasdaq on April 1, 2021.

What is the total gross proceeds expected from Karooooo's IPO?

The total gross proceeds expected from Karooooo's IPO is approximately $29.4 million.

What is the stock symbol for Karooooo?

The stock symbol for Karooooo is 'KARO'.

Who are the underwriters for Karooooo's IPO?

Morgan Stanley and BofA Securities are acting as lead book-running managers for Karooooo's IPO.