Coca-Cola delays IPO of African bottling unit

FILE PHOTO: A worker stands next to a shelf with bottles of Coca-Cola at Makro Store Riversands of South African retailer Massmart in Midrand, South Africa, August 28, 2019. REUTERS/Siphiwe Sibeko/File Photo

(Reuters) - Coca-Cola Co said on Tuesday it had delayed the plans of an estimated $3 billion initial public offering (IPO) of its African bottling unit to 2023 due to turbulence in the market.

The flotation of the division, Coca-Cola Beverages Africa (CCBA), would be the biggest on the Johannesburg Stock Exchange since at least 2016 and a major boost for the flagging index.

Earlier in May, Reuters reported citing three sources that the IPO of the business would be delayed due to market turmoil, stemming from Moscow’s invasion of Ukraine.

Two sources told Reuters last month that Coca-Cola had aimed to list CCBA early in the second quarter, but that timetable had slipped to late in the third quarter.

Coca-Cola said the plans to take the bottling unit public remained unchanged and that it would evaluate macroeconomic conditions before deciding on the timing.

Reporting by Ananya Mariam Rajesh in Bengaluru; Editing by Anil D’Silva