Boxer SA

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 The proposed project entails IFC’s equity investment of up of ZAR350 million (approximately US$19.4 million equivalent in s a cornerstone investor in an Initial Public Offering (IPO) of Boxer Superstores Pty Limited (“Boxer” or “the “Company”) (“The Project”). Boxer is the leading soft discounter in South Africa, with a focus on serving the low to middle-income populations in underserved rural, urban, and peri-urban areas across the country. It is currently a wholly owned subsidiary of Pick n Pay Stores Limited (Pick n Pay or the Group), which is one of the largest grocery retailers in South Africa. Established in 1977 as a conventional wholesaler trading in essential commodities like maize meal, rice, sugar, oil, and beans, Boxer was acquired by Pick n Pay in 2002 when it had 35 stores. Since then, Boxer has grown significantly, becoming a national-scale retail brand with 477 stores, including 296 supermarkets, as of February 2024. Total equity expected to be raised from the IPO is up to ZAR8.0 billion (approximately US$ 470 million) to support Pick n Pay’s recapitalization and Boxer’s expansion in the medium term.The Project will be a continuation of IFC’s systematic efforts to promote inclusive growth in South Africa and signal confidence in Boxer’s inclusive business model and the South African capital markets. IFC’s cornerstone participation in the IPO is expected to crowd in other investors to further support the Boxer strategy focusing on providing affordable grocery products to the low to middle-income segment in South Africa.