Waco postpones Joburg IPO after bridge collapse

Says placement and listing ‘no longer appropriate’.
Neil McCartney/The Citizen
Waco International Holdings, a South African construction-equipment rental company, postponed its planned R3.5 billion ($266 million) share sale following the fatal collapse of a bridge structure over a Johannesburg freeway.

“In light of market uncertainty and industry concerns arising from the tragic collapse of the M1 bridge in Sandton yesterday, the company has decided that it is at this time no longer appropriate to continue with the placement and listing,” the company said in a statement on Thursday.

Waco had planned to raise as much as R1.9 billion from the issue of new stock in Johannesburg, while shareholders including Ethos Private Equity, Rand Merchant Bank and Standard Bank Group intended to sell shares worth a maximum of R1.6 billion. The listing was scheduled to take place on October 23.

The support structure of a bridge being built by Murray & Roberts Holdings collapsed over the freeway serving Sandton, Johannesburg’s financial district, on Wednesday. At least two people were killed and several were injured. Waco didn’t say in the statement whether any of its equipment was being used in the construction.

“Waco remains committed to bringing the company to market at the appropriate time and will continue to evaluate the timing for the proposed placement and listing,” the industrial services company said.

©2015 Bloomberg News

 

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