Karooooo (Cartrack), a provider of vehicle fleet management software primarily in South Africa, announced terms for its IPO on Monday. The company's operating subsidiary, Cartrack Holdings, is currently listed on the Johannesburg Stock Exchange under the symbol CTK. It is expected to delist in connection with the corporate reorganization, and Karooooo will be listed on the JSE under the symbol KRO.
The company plans to raise $190 million by offering 4.0 million shares (38% insider) at $47.52, the as-converted last close of Cartrack's shares on the JSE. At the proposed price, Karooooo would command a market value of $1.5 billion.
Operating in the $50+ billion global telematics market, Karooooo has customers in 23 countries, with more than 1.3 million subscribers. Its customers range from individual consumers to large enterprises including car rental agencies. Founded in 2001, subsidiary Cartrack is based in South Africa, while Karooooo moved its global headquarters to Singapore last year, as it seeks to expand in the faster-growing Asia Pacific and Middle East regions.
Karooooo booked $148 million in revenue for the 12 months ended November 30, 2020, and plans to list on the Nasdaq under the symbol KARO. Morgan Stanley, BofA Securities and William Blair are the joint bookrunners on the deal. It is expected to price during the week of March 29, 2021.
