Cell C has cut the offer price for its imminent JSE debut, trimming as much as R3.50/share off the bottom of the original range and knocking roughly R1-billion to R3-billion off its hoped-for valuation.

In an update to investors on Friday, Blu Label Unlimited Group, Cell C’s largest shareholder, said it has approved a final offer price of R26.50/share for the private placement. At that level, Cell C will list with a market capitalisation of about R9-billion, based on 340 million ordinary shares in issue at admission.

The news immediately impacted Blu Label’s share price, which was trading down 5.7% as of 12.09pm in Johannesburg at R9.90 each, minutes after the news was released.

The move represents a clear step down from the initial indicative range of R29.50 to R35.50/share, published with the pre-listing statement on 13 November and reported by TechCentral at the time. That range implied a valuation of between about R9.5-billion and R12.1-billion, depending on the final share count and whether the over-allotment option was exercised.

Blu Label first floated the idea of spinning out Cell C as part of a broader restructuring to unlock shareholder value earlier this year. The operator formally confirmed its intention to list on the JSE on 5 November, positioning the transaction as a way to streamline its balance sheet and support the next phase of its turnaround.

On track

Friday’s update also confirmed that a key structural feature of the deal has changed. The offer initially included an over-allotment option of up to 9.52 million shares, granted by Blu Label to cover short positions created by over-allotting stock in the bookbuild. With the offer now priced at R26.50, Blu Label says it no longer intends to over-allot any shares.

At the same time, the company has decided to extend the bookbuild until 4pm today (Friday, 21 November 2025), giving institutional investors more time to review their orders in light of the lower price.

Read: Cell C announces JSE listing

For Blu Label, which has previously flagged the Cell C listing as a potential catalyst for unlocking value – and has even left the door open to a special dividend once the transaction is complete – the reduced offer price is a concession to market reality. But it also keeps the long-planned listing on track, even if at a more modest valuation than originally hoped.

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