Zeda

Zeda, a new listing on the JSE, is due to make its debut on the 13th of December, as a result of a disinvestment by parent company Barloworld. Barloworld is spinning-off the car rental and leasing operations in order to simplify its industrial portfolio.
The Zeda businesses trade under the Avis and Budget brands and operats in ten African countries. The businesses manages an average fleet of around 57,000 vehicles, mainly in the core SA operations which is served by 14 retail dealerships in SA.
The group was impacted by the Covid lockdown restrictions, having been downsized during the downturn in the economy. It now appears to be on the recovery track, with a revival in tourism and business travel, and is operating at around 40% capacity, with potential for this to increase to 75% in 2023.
Operating profit in the year to 30th September 2022 rose by 52.8% to R1.2bn, rising above that of pre-Covid levels. This was a result of leverage of top line growth, cost cutting, and streamlining of the operations by the new management.
Management expects a valuation of R4.5bn when it is listed on the JSE on Tuesday, with Barloworld’s shareholders, the major beneficiaries, receiving one Zeda share for each Barlo share they own.
I will do a further in-depth report post the listing, however in the interim, click here for additional information.