Johannesburg – Cell C Holdings has announced its intention to list its shares on the Johannesburg Stock Exchange.
The listing will be done through a private placement of existing shares by The Prepaid Company (TPC), a wholly-owned subsidiary of Blue Label Telecoms.
The move is subject to JSE approval and market conditions.
“The decision to pursue a listing on the JSE marks a significant and exciting step in Cell C’s growth story,” Jorge Mendes, Chief Executive Officer of Cell C, stated on Wednesday, 5 November 2025.
“While Cell C is already owned by a listed entity and has operated within that framework, the separate listing of the Company will enable the Group to streamline its balance sheet, reinforce its growth strategy, and strengthen its competitive positioning of business segments.
“The listing is expected to be an enabler of our strategy, as it will elevate the Cell C brand, enhance access to capital to sustain growth, instil public transparency and market discipline, and enhance the Group’s profile with all stakeholders.”
Restructuring Before the Listing
Before the listing, Cell C will undergo a restructuring to simplify its capital structure. The key steps include:
- Converting TPC’s debt claims against Cell C into equity.
- Cell C is acquiring 100% of Comm Equipment Company (CEC), which manages its postpaid services.
- Transferring airtime assets from TPC back to Cell C.
- Unwinding the Special Purpose Vehicles (SPVs) that hold equity in Cell C.
After this restructuring, TPC will hold a majority of the shares in Cell C Holdings Limited. TPC will also transfer a 4.5% stake to the Cell C executive team.
The Share Offer
TPC will offer shares to qualified investors to raise approximately ZAR 7.7 billion.
This includes an option to sell additional shares and an allocation of up to ZAR 2.4 billion in shares to a B-BBEE ownership vehicle. Cell C will not receive any of the proceeds from this share sale.
Cell C’s Business Model
In recent years, Cell C shifted its strategy to reduce capital expenditure.
It now uses its own spectrum on the network infrastructure of MTN and Vodacom, rather than operating its own physical towers. This is known as a capex-light model.
This approach allows Cell C to offer national coverage without the high cost of building and maintaining a full network.
The company reported that its capital expenditure intensity was 5.7% for the period ended 31 May 2025.
As of 31 May 2025, Cell C had approximately 7.6 million mobile subscribers. Prepaid customers make up 89% of its base.
The company is also a leading host for Mobile Virtual Network Operators (MVNOs) in South Africa, with 13 MVNOs on its network, including Capitec Connect and FNB Connect.
Financial Overview
For the year ended 31 May 2025, on a standalone basis, Cell C reported:
- Revenue: ZAR 11.1 billion
- EBITDA: ZAR 2.1 billion
On a pro forma basis, which includes CEC, the Group reported:
- Revenue: ZAR 13.7 billion
- EBITDA: ZAR 3.7 billion
After the restructuring, the Group is expected to have a gross debt of ZAR 2.75 billion.
Future Strategy
Cell C’s strategy is built on five pillars:
- Addressing network quality and public perception.
- Reinforcing value to drive growth.
- Leveraging partnerships to increase revenue.
- Delivering a better customer experience.
- Strengthening its brand connection.
The company said it believes the JSE listing will help enable this strategy by providing better access to capital and increasing its public profile.
*This article first appeared in our sister publication Techfinancials.co.za
