South Africa's Rhodes Food raises $107 mln in mid-range priced IPO

JOHANNESBURG (Reuters) - South Africa's Rhodes Food Group Ltd raised $107 million in an initial public offering (IPO) priced in the middle of an earlier indicative range, it said on Friday. At that price, the IPO would give the maker of frozen food and prepared meals a market capitalisation of 2.6 billion rand ($233 million) when it lists next Thursday. Rhodes supplies major retailers such as Woolworths, Pick n Pay and Shoprite with jams, pastries and sausage rolls and sells canned citrus in Britain. It competes with Tiger Brands and Pioneer Food Group. The company reported a more than one-third rise to 1.8 billion rand in revenue in the nine months to end-June, while core profit, or EBITDA, increased by the same margin to 195 million rand. Rhodes, which had set the IPO price in a range of 10.50 rand and 13.50 rand, sold 102 million shares million at 12 rand each, raising 1.2 billion rand. The IPO included a follow on offer, or overallotment option for underwriters, of about 9 million shares, aimed at stabalising the price and preventing it from going below the offer price. The offer comprised of 50 million shares issued by the company to raise 600 million rand to pay down debt and another 43 million shares from shareholders cashing out. Morgan Stanley, FirstRand's Rand Merchant Bank unit and Renaissance Capital have been appointed joint coordinators and bookrunners. (1 US dollar = 11.1714 South African rand)