Boxer SA

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 Boxer Superstores Pty Ltd (“Boxer” or “Company”) is South Africa’s leading discount supermarket chain focused on the lower-income population and underserviced rural and peri-urban areas. The first Boxer store opened in Kwa-Zulu Natal South Africa in 1977. Since 2002, Boxer has been a wholly owned subsidiary of Pick n Pay Stores Ltd (“Pick n Pay” or “Group”), South Africa’s third-largest food retailer. As of September 2024, Boxer operates six distribution centers (“DCs”) for dry goods, a meat processing factory, 300 superstores (ranging in size from 1,800 to 2,000 m²), 159 liquor stores (adjacent to superstores, with typical store sizes of 220 to 400 m²), and 30 hardware stores called Boxer Build (with typical store sizes of 410 m² and a 1,000 m² storage yard) across South Africa and Eswatini. Facilities in Eswatini are limited to nine superstores. Most facilities are leased.  A new DC, Whetstone, is under construction in the eThekwini Municipality, Kwa-Zulu Natal, South Africa. The DC is owned by Boxer in partnership, as a consortium, with a property developer, and the property developer oversees the construction of the DC, including permitting and regulatory compliance. Construction is estimated to be completed in August 2025.  Boxer also operates a meat processing plant, located in Salt Rock, Kwa-Zulu-Natal, which produces ready to eat polony and sausages. Logistics is handled by a third-party company who also handle logistics for some of Boxer’s refrigerated and frozen products. Confined label brands (such as cooking oil, flour, rice, pasta, condiments, washing powder and nappies), brands owned by Boxer, are manufactured by 3rd parties. They account for approximately 600 stock keep units (“SKUs”) (within around 3000 SKUs). Confined label brands are manufactured by suppliers across 103 sites, 94 of which are in South Africa.  The proposed Boxer IPO will comprise a sale of a 35% stake in Boxer. IFC’s proposed investment of ZAR350 million (approximately US$20m) will result in a shareholding of up to 1.4%. Boxer expects to open approximately 60 – 70 stores annually and three DCs in SA in the medium term, with a significant portion of the stores in underserved areas. Store expansion involves landlord-managed construction and renovation, including in existing malls, with Boxer-supervised contractors handling shop fitting.