Karooooo's US$75m Nasdaq ABB over 3x subscribed with Standard Bank acting as joint lead bookrunner
10 Jul 2025
Country
South Africa
Year
2025
Sector
Telecoms Media and Technology
Business Unit
Investment Banking
Specific Role
Joint Lead Bookrunner
Standard Bank is proud to have acted as Joint Bookrunner on the US$75 million accelerated bookbuild (ABB) on the Nasdaq for Karooooo. The transaction comprised a secondary sell-down by Founder and CEO Zak Calisto, generating strong interest from US and UK investors and an orderbook that was over 3 times covered. Post the secondary offering, Zak Calisto remains the owner of 58% of the issued shares. The secondary offering is intended to increase liquidity.
As joint bookrunner, Standard Bank was the only local African bank involved in this significant transaction. Standard Bank’s key value-add was to deliver long-only investor demand. This outcome showcases Standard Bank's unique ability to connect high-quality African issuers with a global investor base, and underscores our strength in equity capital markets.
Karooooo, through its leading Cartrack platform, plays a vital role in the economies in which it operates by enhancing operational efficiency, improving fleet management and boosting the operational productivity for businesses across various sectors. By supporting companies such as Karooooo, Standard Bank actively contributes to strengthening the very businesses that drive economic growth and create opportunities within the African continent.
Head of ECM South Africa and sub-Saharan Africa at Standard Bank Richard Stout commented, " Our ongoing support in broking the Karooooo story helped us bring in high-quality, fundamental demand for the ABB highlighting Standard Bank's ability to connect global capital to African success stories."
This deal has increased the stock's free float, improving its liquidity and making it more accessible to institutions. “We're delighted to have helped new, long-term investors access the stock through the ABB, and increase the stock’s profile,” says Stout.
Founder and CEO of Karooooo Limited Zak Calisto affirmed the success, "Standard Bank's delivery of high-quality, long-only demand was crucial to the transaction's success, which closed more than 3 times subscribed. Their performance testifies to the quality of their global equity distribution capabilities."