South Africa: Jawno’s Transaction Capital Launches WeBuyCars on JSE

Transaction Capital, led by South African businessman Jonathan Jawno, made a huge move today by listing its subsidiary WeBuyCars on the Johannesburg Stock Exchange (JSE) Main Board under the symbol “WBC.” The transaction is viewed as a strategic move to unlock shareholder value and increase WeBuyCars’ brand position in the competitive used-car industry.

WeBuyCars, founded in 2001, has revolutionized the pre-owned vehicle market by upsetting the traditional purchasing and selling procedure. The company has a strong workforce of 2,800 people, a network of 15 stores, and 74 buying pods with over 340 nationwide buyers, exhibiting exceptional growth and operational efficiency.

WeBuyCars achieved good success in February 2024, purchasing 14,354 vehicles and selling 13,132 for a total revenue of R1.8 billion ($95.67 million). WeBuyCars CEO Faan van der Walt is certain that the offering would grow the brand, increase shareholder liquidity, and recruit top personnel.

Transaction Capital is a significant South African financial services business that specializes in asset-backed lending and specialist risk services. It operates as a non-deposit financial services entity in South Africa and Australia.

Jawno, a founder member of Transaction Capital, owns a significant 9.59 percent stake in the company, making him the group’s second-largest stakeholder behind the Public Investment Corporation.

Transaction Capital announced the decision to unbundle and float WeBuyCars in late January to unlock shareholder value after the group’s share price fell due to SA Taxi’s poor performance in 2023.

Valdene Reddy, Director of Capital Markets at the JSE, expressed a warm welcome to WeBuyCars, expressing the exchange’s delight for the new listing.

WeBuyCars is the JSE’s second offering in 2024, adding to the exchange’s portfolio of 283 firms with a market capitalization of R18.4 trillion ($978.11 billion).

WeBuyCars debuted at around R20 ($1.06) per share, indicating a solid start for the company and demonstrating the potential for additional expansion in the automotive sector.

Leave a Reply