Cell C is set to list independently on the Main Board of the JSE, giving investors direct access to the mobile operator for the first time. The company is majority-owned by Blu, which previously provided indirect exposure to Cell C.
The listing marks a major milestone in its multi-year turnaround strategy, which has focused on strengthening the balance sheet, streamlining operations, and shifting to a more capital-efficient model. By coming to market as a standalone entity, Cell C aims to present a clearer, more transparent investment case centred on improved governance, reduced leverage, and a simplified business structure.
Restructuring and Simplification
Ahead of the listing, Cell C has strengthened its governance and simplified its organisation by finalising the agreements outlined in the Pre-Listing Statement, enhancing its board and audit structures, and appointing new independent directors to improve oversight.
The Group is also optimising its capital structure by reducing legacy debt, unwinding shareholder loans, and returning discounted airtime previously issued to TPC (The Prepaid Company) - steps that remove historical complexities and create a more efficient setup before listing.
Key IPO Dates
Operational Positioning Post-Listing
Once listed, Cell C will enter the market with a virtualised network model supported by national roaming agreements with MTN and Vodacom, as well as a leading position in the MVNO (Mobile Virtual Network Operators) space. With 7.6 million subscribers and improving financial performance (reflected in pro forma EBITDA of R3.7 billion for the year ended 31 May 2025), it arrives in the public markets with a clearer operational profile than in previous years.
Access Through EasyEquities
EasyEquities offers investors the opportunity to participate in the Cell C IPO (Initial Public Offering), enabling more retail investors to participate in the local IPO space.
Where EasyEquities successfully secures an allocation in the Cell C offering, the available shares will be distributed among participating investors, with the final number depending on the allocation received.
Dividend Policy
Cell C has adopted a dividend policy targeting the payout of 30% to 50% of free cash flow each year, subject to its financial position, operational needs, and strategic priorities, with the first dividend expected in the 2027 financial year.
While the policy outlines Cell C’s intention to return capital to shareholders, the board retains full discretion to adjust or suspend dividends based on performance, capital requirements, and market conditions.
Cell C Listing Implications for Blu
For Blu Label Unlimited Group Ltd (Blu) shareholders, the separation has important financial effects. Previously, Blu gave investors exposure to Cell C through its group structure, so the shift to a standalone listing marks a major change. The Prepaid Company (Blu’s subsidiary and the seller of the Cell C shares) will receive the proceeds from the sale. According to the SENS announcement, some of the funds will go toward reducing debt, while a portion has been set aside for dividend payments. As a result, Blu is expected to pay dividends after the Cell C listing.
Sources – EasyEquities.
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