After years of financial strain and a determined three-year turnaround, South Africa’s fourth-largest mobile operator, Cell C Holdings Limited, is preparing for a high-stakes return to the Johannesburg Stock Exchange (JSE).
The company and The Prepaid Company (TPC), a wholly owned subsidiary of Blue Label Telecoms (now Blu Label Unlimited) and Cell C’s 53.57% controlling shareholder, launched a private placement of up to 173.4 million ordinary shares, with an additional 9.52 million share overallotment option.
Priced between R29.50 and R35.50, the offer seeks to raise as much as R6.5 billion (about $375 million) before the book-build closes at midday on 21 November.
A Main Board listing under the ticker “CCD” is targeted for 27 November, subject to JSE approval and minimum free-float thresholds.
Rather than issuing new shares, the transaction is a strategic sale of TPC’s existing holdings to qualified investors.
Notably, roughly 68 million shares worth around R2.4 billion are set aside for a new broad-based black economic empowerment (B-BBEE) structure, reinforcing Cell C’s commitment to inclusive participation.
TPC will remain the majority shareholder after the offer (after allocating 4.5% to Cell C executives). For Blu Label investors, the deal represents a value unlock: the company’s share price climbed more than 11% following the May 2025 announcement.
In a consolidating telecom sector, the listing could become one of the year’s most significant tech-market events.
From Near-Collapse to Profitability: Cell C’s Turnaround Story
Cell C’s resurgence is one of South Africa’s most dramatic corporate recoveries. Following Blue Label’s 2017 recapitalisation, originally giving it a 45% stake Cell C struggled under more than R16 billion in liabilities and negative equity of R3.2 billion by 2024.
When CEO Jorge Mendes took the helm, the company embarked on a disciplined three-year restructuring strategy.
The plan relied on shifting to a capex-light model, selling tower infrastructure, and using MTN and Vodacom networks for 98.7% national coverage across 28,000 sites. Capex intensity dropped to 5.7%, strengthening free cash flow.
The financial results show the impact:
- Standalone FY2025 revenue: R11.1 billion (up from R10.8 billion)
- Group pro forma revenue: R13.7 billion (including postpaid arm CEC)
- Group EBITDA: R3.7 billion, up 84%
- Standalone EBITDA: R2.09 billion (stable after adjustments)
- EBIT: R1.6 billion
- Profit before tax: R280 million, a shift of more than 200%
- Subscribers: 7.6 million (89% prepaid), supported by 13 MVNO partners such as Capitec Connect and FNB Connect
Blu Label’s FY2025 performance strengthened the narrative, posting revenue of R14.1 billion and a 31% jump in EBITDA to R1.6 billion.
More than R1.5 billion in profit recognition and impairments linked to Cell C fed into the momentum. As CEO Mark Levy put it, the turnaround “crystallises our undervalued Cell C investment.”
READ ALSO:How Standard Bank Delivered the JSE’s Largest Equity Deal Ever
The Restructuring Blueprint: Clearing Debt, Rebuilding Equity
Cell C’s listing rests on a comprehensive restructuring plan effective since 1 September 2025 and approved by the Competition Tribunal. The overhaul includes:
Key Actions and Their Impact
| Action | Impact |
|---|---|
| Debt-to-equity conversion: R3.68 billion in TPC claims converted to equity | Strengthens balance sheet; reduces leverage |
| Asset transfers: R7.3–7.5 billion airtime (incl. VAT) and CEC (at R2.15 billion valuation) exchanged for shares | Internalizes postpaid business; improves operational efficiency |
| Stake acquisitions: TPC buys out Nedbank and Lesaka stakes | Raises control to 53.57%; allocates 4.5% to executives |
| Lease and liability settlements: R750 million in telecom leases settled via airtime | Removes legacy obligations |
The result is transformative:
- Negative equity eliminated
- Net assets rise to R8.3 billion
- Gross debt cut to R2.75 billion
- Debt/EBITDA ratio at 0.8×
- SPVs unwound, creating a cleaner group structure ahead of listing
The Private Placement: Mechanics and Market Positioning
The private placement implies a post-listing valuation between R9.5 billion and R12.1 billion, based on 340 million total issued shares.
With up to 53.8% of shares available for sale, the offer targets institutions while prioritising a significant B-BBEE tranche to advance transformation goals in a country driving an R2 trillion-plus empowerment agenda.
Proceeds go to TPC rather than Cell C directly, strengthening Blu Label’s balance sheet and supporting its distribution-led strategy.
Post-listing guidance includes:
- Revenue growth: low to mid-single digits
- EBITDA margins: Low-20% range
- Capex: Mid-single digits
- Leverage: Below 1× net debt/EBITDA in the medium term
- Dividend policy: 30–50% of free cash flow from FY2027 onwards
A New Chapter for South African Telecoms
Cell C’s planned R6.5 billion raise and JSE relisting almost a decade after its earlier ambitions marks a pivotal moment for the company and the sector.
Combining financial discipline, operational restructuring and a clear empowerment agenda, the listing represents more than a return to public markets. It signals a renewed commitment to competition and accessible digital services in South Africa.
For investors watching Africa’s expanding digital economy, the CCD ticker may soon become one of the JSE’s most closely watched comebacks.
Cell C Overview
For South Africans using Cell C services, the Cell C login portal is often the first stop for managing accounts, viewing usage, and checking upgrades.
Many customers explore the latest offers through the Cell C catalogue, comparing bundles, devices, and plans before committing to a Cell C contract that fits their budget and lifestyle.
Those who want quick access on the go usually rely on the Cell C app, which also makes it easy to perform a Cell C balance check without dialling codes.
Shoppers hunting for deals on Apple devices regularly browse the dedicated Cell C iPhone section, while anyone needing help can reach out through Cell C customer care for assistance.
Ronnie Paul is a seasoned writer and analyst with a prolific portfolio of over 1,000 published articles, specialising in fintech, cryptocurrency, climate change, and digital finance at Africa Digest News.
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