HomeChoice plans to equity raise to fund expansion

HomeChoice International PLC, a leading provider of innovative retail and financial services products in Southern Africa, is considering an equity raising to fund future growth. In a recent interview with CNBC Africa, Shirley Maltz, Group CEO of HomeChoice, discussed the company's plans to increase liquidity and invest in infrastructure to continue their impressive growth trajectory. Maltz highlighted the company's strong performance over the last decade, with a 20% growth rate, and outlined their strategic focus on customer experience, technology, and expanding their presence in South Africa and beyond. One of the key motivations behind the equity raise is to improve liquidity on the JSC and attract a broader base of investors. Maltz mentioned that major shareholders, including private equity firm Brait and the Government Employees Pension Fund, are likely to participate in the share sale to support the company's growth initiatives. HomeChoice aims to raise approximately one billion rand through the equity raise, pending approval from shareholders at their upcoming AGM. Discussing the areas of investment, Maltz emphasized HomeChoice's commitment to enhancing customer experience, upgrading technology systems, and expanding their reach in South Africa, as well as exploring opportunities in other African markets. She highlighted the importance of investing in infrastructure, such as warehouses and showrooms, to support the company's transformation journey. When asked about the potential impact of recent political changes in South Africa, Maltz expressed optimism about the business environment, citing the long-term resilience of HomeChoice's customer base. She noted that the company's focus on serving the urban African woman has yielded positive results over the years, and she expects continued growth despite external factors. In conclusion, HomeChoice International PLC's plans for an equity raise reflect their strategic vision for sustainable growth and expansion. By investing in key areas of infrastructure and technology, the company aims to enhance their market position and deliver a superior customer experience. With a strong track record of performance and a clear roadmap for the future, HomeChoice is poised to capitalize on emerging opportunities in the retail and financial services sector in Southern Africa and beyond.