WeBuyCars’ parent company, Transaction Capital, has announced that it is undergoing the requisite steps to unbundle and list the online second-hand car retailer on the Johannesburg Stock Exchange.
WeBuyCars, the South African online car retailer, is set to list on the Johannesburg Stock Exchange, according to parent company Transaction Capital. The company’s online platform allows customers to valuate the used cars they want to sell regardless of age or current condition. WeBuyCars then makes a quote on the vehicle, which the customer can then accept or decline. If accepted, the company then makes the payment and collects the car from the customer to sell.
“WeBuyCars delivered on key performance metrics including increased volumes and growth in market share [and] this positive momentum has continued into 2024, notwithstanding the adverse market conditions,” Transaction Capital said in a statement. “The unbundling, if implemented, will allow shareholders to have direct access to a market-leading asset.”
Transaction Capital further stated that WeBuyCars’ proprietary AI-driven technology is likely to fend off competition in South Africa’s second-hand car market, giving the company sufficient market to sustain shareholder value. “WeBuyCars is differentiated from any other players in the local second-hand vehicle market by its proprietary artificial intelligence (‘AI’), data and analytics capabilities which optimise the vehicle and buying selling process” the company stated.
Transaction Capital’s latest results show that WeBuyCars purchased more than 142,000 cars in the 2023 financial year, a 9% increase from the previous year. This translated to core earnings of over R655 million (~$35 million). Transaction Capital acquired a 49.9% stake in WeBuyCars in 2020 for R1.8 billion (~$97 million) in cash, debt and equity.