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Steinhoff Listed On Frankfurt Stock Exchange

Frankfurt, Germany: STEINHOFF International realised a market capitalisation of €19bn after its listing on the Frankfurt Stock Exchange. Reported Business Day, it is one of the largest listings in Germany in 2015.

The group makes and distributes furniture, household goods and clothing through about 6,500 retail outlets in 30 countries. It has extensive manufacturing facilities in SA and eastern Europe. The stock opened at €5 and rose to €5.085 after lunch. It gained 3.74% in its secondary listing on the JSE last Monday.

“It’s been a fantastic (day) with a lot of emotion… it’s a big high point in our lives” Jooste said. But he was not among the group’s management team celebrating in Frankfurt as he was resting a sports injury at home in Stellenbosch after spending weeks flying “all over the world”.

Jooste said the listing in Frankfurt, with an inward listing on the JSE, would raise the group’s international profile. The listing in Europe was purely by introduction, with no book runners, and the share was trading “purely at a willing buyer, seller price” basis, he said.

With 70% of Steinhoff’s business now denominated in euro. This made Frankfurt a “natural place” for the listing as it was the largest euro-based exchange in Europe. The group has nearly 600 stores in Poland and more than 100 more in Slovakia, the Czech Republic, Romania and Hungary.

In 2011, it bought Conforama, Europe’s second-largest retailer of home furnishings, with more than 200 stores in France, Spain, Switzerland, Portugal, Luxembourg, Italy and Croatia. “Since 2005, we invested in a retail footprint in Europe. We operate in every main European country,” Jooste said.

Retail tycoon Christo Wiese became a significant Steinhoff shareholder last year following the company’s acquisition of 92.3% of Pepkor.

Mariza Nel, director of Steinhoff’s international group services, said on Monday Frankfurt trading had started up in the day, but that there still was a long way to go. “We need to educate developed market investors (about the company),” she said.

Jooste said the group was a top- 10 retailer worldwide in the product categories it operated in. “It’s a fantastic thing to take the Pep brand and roll it out so aggressively in eastern Europe,” he added.