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Nando's licks the JSE clean
LISTING FRENZY
NANDO'S Group Holdings, producer of flame-grilled Portuguese chicken, made a fiery debut on the JSE on Friday, closing 50% above the 100c issue price, the most actively traded share of the day. Nando's, which holds 100 restaurants and has developed several branded retail products, listed 192-million shares of 100c on the beverages, hotels and leisure sector after raising R25-million in a preferential and public offer. The share opened 50% higher than the issue price at 150c, and, apart from a lull to 126c at one stage, ended the day on the 150c high. The level of interest in the share is evident in the volumes traded. It was most active in terms of volume, and by the end of trade, nearly 10.7-million shares valued at R14.8-million had changed hands in 1 426 deals. Nando's public offer to raise R15-million was 24 times over-subscribed. Analysts anticipated a huge initial rush for the shares. Closure of the trading floor following the JSE's move to the Jet system did not stop management and company employees from having a big, and rather emotional, listing bash on the old JSE floor. Bobby Favish, Nando's chief financial officer, said he would rather not comment on the price. "The market must determine the price and we must concentrate on the business." Analysts said they considered the price of 150c "quite demanding", and expected it to level off at around 130c once initial demand was met. "Its amazing what marketing can do," said one. The company, known for its awardwinning marketing and advertising, came out with excellent pre-listing marketing gimmicks, including a box of chicken stock and an advert, entitled "Bulls, bears and now chickens", which said: "May our chickens bring prosperi-perity to all our shareholders." Nando's has forecast earnings of 6.25c (5.15c) a share in the year to February 1998 and a dividend of 2.5c a share.
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