WeBuyCars is a leading player in South Africaʼs automotive retail sector, known for its efficient and trusted approach to buying and selling pre-owned vehicles.
Established in 2001, the company has transformed the vehicle trading process into a seamless experience. With 3,100 employees, 17 vehicle supermarkets, 80 buying pods, and over 380 buyers nationwide, WeBuyCars has become a household name.
The partnership between WeBuyCars and Pallidus began in 2018, marking the start of a significant journey towards growth and expansion. At that time, WeBuyCars, already a well-established player in South Africaʼs automotive retail sector, was looking to introduce a strategic shareholder to position it for its new growth phase.
However, the challenge was clear: how to introduce a new strategic shareholder to support the growth strategy whilst protecting the interest of the founding shareholders.
WeBuyCars sought out Pallidus for their expertise in mergers and acquisitions for strategic guidance.
The first major step in this collaboration was Pallidusʼ involvement in a transaction where Transaction Capital acquired a 49% stake in WeBuyCars. This was a critical move that provided WeBuyCars with a partner who had the financial backing to support WeBuyCars in scaling its operations and advance WeBuyCars’ vision of offering credit and insurance related products to its customer base.
The relationship deepened with a second transaction, in which Transaction Capital increased its shareholding to 74.9%. This further solidified the strategic partnership and laid the groundwork for continued growth.
However, as the business landscape evolved with Transaction Capital coming under immense pressure due to other parts of its business particularly SA Taxi, struggling to recover post-Covid, both WeBuyCars and Transaction Capital recognised the need for a different approach in the best interest of WeBuyCars and Transaction Capital. This led to a mutual decision to explore different paths, resulting in Transaction Capitalʼs complete exit from WeBuyCars.
This exit, rather than hindering growth, opened up a new opportunity.
With Pallidusʼ strategic guidance, WeBuyCars was poised for a significant milestone — the listing on the Johannesburg Stock Exchange (“JSE”). This listing was not just a financial move but a strategic step to position WeBuyCars in the capital markets , enhance the brand, and create liquidity for shareholders.
Acting as joint transaction advisor, book runner, and JSE sponsor, Pallidus advised and executed a smooth, compliant process.
Leveraging their corporate finance expertise and regulatory knowledge, Pallidus guided WeBuyCars through this critical phase.
allidus provided strategic guidance, market analysis, and compliance checks, coordinating with regulators and investors to facilitate a seamless listing process.
The success of this project was driven by several of Pallidus’ key strategic strengths:
The listing on the JSE was a significant milestone for WeBuyCars, reflecting investor confidence in the companyʼs business model and growth potential. The successful capital raising highlighted strong market demand for WeBuyCarsʼ shares and confidence in the automotive retail sector. Post the listing the share price of WeBuyCars continued to perform well making the WeBuyCars listing one of the most successful listings on the JSE at a time when delistings are the trend.
Faan van der Walt, CEO of WeBuyCars, said, “It has been an amazing journey that culminated in a listing on the JSE. We are excited about the road ahead as the listing opens up many opportunities such as enhancing our brand, creating liquidity for shareholders and attracting staff.ˮ
Valdene Reddy, Director of Capital Markets at the JSE, also welcomed WeBuyCars to the exchange, underscoring the strength of South Africaʼs capital markets and the JSEʼs role in supporting corporate growth.
The success of WeBuyCarsʼ JSE listing, as well as the ongoing relationship between WeBuyCars and Pallidus, demonstrates our expertise and commitment to creating sustainable value for clients. Over the past decade, we have built a legacy of connecting capital and guiding businesses through complex financial landscapes.
As Pallidus celebrates its 10th anniversary, we invite you to connect with us and explore how our bespoke financial solutions can support your success.
Faan van der Walt, CEO of WeBuyCars, said, “It has been an amazing journey that culminated in a listing on the JSE. We are excited about the road ahead as the listing opens up many opportunities such as enhancing our brand, creating liquidity for shareholders and attracting staff.ˮ
Valdene Reddy, Director of Capital Markets at the JSE, also welcomed WeBuyCars to the exchange, underscoring the strength of South Africaʼs capital markets and the JSEʼs role in supporting corporate growth.
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