Cell C to list shares on Johannesburg Stock Exchange 

Cell C Holdings, a mobile network operator, has unveiled plans to list on the Johannesburg Stock Exchange (JSE) and solidify its position as South Africa’s agile, capex-light telecom challenger.

The mobile operator confirmed that all its issued ordinary shares will be admitted to trading on the JSE under the ticker CCD, pending regulatory approval and market conditions. The listing will not involve Cell C raising new capital. Instead, it will be accompanied by a private placement of existing shares by The Prepaid Company (TPC), a subsidiary of Blu Label Telecoms, Cell C’s largest shareholder.

TPC aims to raise approximately R7.7 billion ($440 million) through this placement, which includes a R500 million ($28 million) overallotment option and up to R2.4 billion ($137 million) worth of shares allocated to a black empowerment vehicle. Proceeds will be used to settle TPC’s interest-bearing debts, meet financial obligations, pay dividends to shareholders, and provide working capital.

“A separate Cell C listing will streamline our balance sheet, reinforce our growth strategy, and strengthen our competitive positioning,” Cell C CEO Jorge Mendes said. He added that the move would bring the benefits of public market discipline, brand visibility, and access to a broader investor base, supporting the company’s next phase of execution and growth.

Ahead of the listing, Cell C will carry out a major restructuring to simplify its ownership and fully separate from Blu Label. The process involves converting TPC’s debt claims into equity to cut down leverage, acquiring Comm Equipment Company (CEC) to take full control of postpaid device financing, and transferring airtime assets from TPC to Cell C in exchange for shares. In addition, special-purpose vehicles that previously held Cell C equity will be dismantled.

Following this “flip-up” structure, all existing shareholders will exchange their holdings for shares in Cell C Holdings, and management will collectively receive 4.5% of the company’s equity.

Cell C’s turnaround story has been closely watched in the South African telecom industry. Once burdened by debt and infrastructure costs, the company has successfully repositioned itself as a capex-light operator, leveraging its own spectrum alongside MTN and Vodacom’s radio access networks (RANs). This dual-RAN strategy enables access to over 28,000 sites and nearly 99% population coverage while keeping capital expenditure below 6% of revenue—one of the lowest ratios in the market.

As of May 2025, Cell C reported about 7.6 million subscribers, with prepaid users making up 89% of the base. It also hosts 13 of South Africa’s 23 mobile virtual network operators (MVNOs), including Capitec Connect, FNB Connect, Shoprite K’nect, and Old Mutual Connect, cementing its position as the country’s leading MVNO platform provider.

For the financial year ending March 2025, Cell C posted R11.1 billion in standalone revenue (R13.7 billion including CEC), R2.1 billion in EBITDA, and R1.6 billion in operating profit. The company also reduced its net debt-to-EBITDA ratio from 4.3x in 2024 to 2.7x, with gross debt expected to fall to around R2.75 billion after the restructuring.

Looking ahead, Cell C is targeting modest but steady revenue growth, EBITDA margins in the low-20% range, and capex intensity in the mid-single digits. Management expects to reduce net debt-to-EBITDA to below 1x in the medium term. The board has also adopted a dividend policy to return 30–50% of free cash flow to shareholders, with the first payment anticipated in the 2027 financial year, subject to performance.

With its JSE debut, Cell C is positioning itself to challenge the dominance of South Africa’s two biggest networks on its own terms.