South African businessman Zak Calisto has sold R1.3 billion worth of shares in Karooooo. This big move made investors nervous. People are now asking what this means for the future of the company and South Africa’s tech market.
Zak Calisto’s Share Sale Shakes The Market
Zak Calisto is the CEO and founder of Karooooo. He sold 1.5 million shares in a public sale. Each share was sold at US$50 (about R890). The total amount made was about R1.34 billion. The sale is expected to finish on June 13, 2025, after some final steps are completed. There is also a plan that lets underwriters buy 225,000 more shares within 30 days.
Ownership And Voting Control Post Offering
Even after selling so many shares, Calisto still owns 17.92 million shares. That means he still controls 58% of Karooooo (or 57.27% if more shares are sold later). Another person in the company, Juan Marais, owns 10.52% of Karooooo through a company called One Spire (Pty) Ltd. To help Calisto keep control, One Spire agreed to always vote with him. So even if Calisto owns less than 51%, he will still have power over big decisions.
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Underwriters And Institutional Distribution
The banks that helped with the sale are:
- UBS Investment Bank
- William Blair
- Standard Bank
Other banks that helped include:
- Raymond James
- Needham & Co
- Roth Capital Partners
All the money from the sale goes to Calisto, not to the company. Karooooo only pays some small costs (not including the bank fees). This shows that Calisto sold the shares for his own money needs not because the company needed funds.
Share Price Fallout: Karoooo Drops Over 16%
After the sale was announced, Karooooo’s share price dropped from R1,039 to R879. This drop worried many investors in South Africa’s tech space.
Why The Sell-Off Shook The Market:
Investors got nervous: Some people thought Calisto was not confident in the future of the company. Too many shares: Selling 1.5 million shares at once added more supply to the market. Lower share price: The shares were sold at a discount, which pushed the price down even more.
Calisto’s Net Worth And Wealth Strategy
How Zak Calisto Became Rich:
He started companies like Vehicle Tracking Services and Cell Communications. Later, he built Cartrack into a big company listed on the Nasdaq and JSE. In early 2025, his total share value reached about R18 billion. Even after this big sale, most of Calisto’s money is still in Karooooo. This means his success is still connected to the company’s success.
Conclusion
A Billionaire’s Move, Not An Exit Plan
Zak Calisto’s R1.3 billion share sale is just a way to get some cash. It is not a sign that he is leaving or giving up on the company. He still owns 58% of Karooooo and has special voting support. So, he is still in control. Even though the share price dropped, Karooooo is still strong. It is growing, improving technology, and getting more subscribers. As the JSE keeps an eye on this, Calisto is still a big part of South Africa’s growing tech world.