Bullish indicating open at $55-$60, IPO prices at $37
SINGAPORE - Karooooo Ltd. (NASDAQ:KARO), currently trading near its 52-week high at $59.53, announced the pricing of a secondary public offering of 1.5 million ordinary shares held by CEO Isaias (Zak) Jose Calisto at $50.00 per share, generating approximately $75 million in gross proceeds. The stock has demonstrated remarkable strength, delivering a 69% return over the past year.
The offering, expected to close on June 13, 2025, includes an option for underwriters to purchase up to an additional 225,000 shares from Calisto at the same price within 30 days.
Karooooo will not receive any proceeds from the sale but will bear costs associated with the transaction, excluding underwriting commissions which will be paid by Calisto.
Following the offering, Calisto will retain ownership of 17,917,958 shares, representing 58% of Karooooo’s outstanding shares. This would decrease to 57.27% if the additional share option is fully exercised.
Juan Marais, Karooooo’s Chief Sales Officer, owns 10.52% of the company through One Spire (Pty) Ltd. An agreement stipulates that if Calisto’s ownership falls below 51%, One Spire will vote its shares as directed by Calisto.
UBS Investment Bank, William Blair, and Standard Bank are serving as joint active lead book-running managers for the offering, with Raymond James as joint book-running manager. Needham & Company and Roth Capital Partners are also participating in managing roles.
The Singapore-headquartered company provides cloud-based solutions for fleet management, workforce management, logistics and other operational functions to over 125,000 commercial customers globally.
The information is based on a press release statement from the company.
In other recent news, Karooooo Ltd. reported a 3% revenue upside for its fourth fiscal quarter of 2025, alongside a record number of net new subscriber additions, which grew by 17% year-over-year. Analyst Alex Sklar from Raymond James responded to these results by raising the company’s price target to $58 from $51, maintaining an Outperform rating. The financial results have indicated an accelerating organic subscription growth outlook for fiscal year 2026, with an anticipated increase of 18% at the midpoint. This is an improvement compared to the 15% growth in fiscal year 2025. Sklar highlighted the company’s ambitious hiring plans, aiming for a 30% increase in staff across various regions for fiscal year 2026. He also noted the potential for Karooooo to enhance its growth, with the introduction of Cameras/Cartrack Tags expected to contribute to more than 5% ARPU blended growth. These developments are viewed positively, despite some associated risks, as they may lead to an expansion of the company’s market multiple. Sklar expressed confidence in the sustainability of Karooooo’s growth, supported by the diversity of its growth vectors.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.