Boxer Retail surged in its Johannesburg debut following South Africa’s biggest initial public offering since 2017.

The stock gained 17% to R63.01 at 9:07 a.m. local time, up from the IPO price of R54 a share.

Raising at least 8 billion rand for owner Pick n Pay Stores, the budget retailer received ample demand for the offering that was priced at the top of the marketed range. The deal size could increase to R8.5-billion through an allocation of additional shares under a so-called green-shoe option.

A positive reception for Boxer would further cement bullish sentiment around the Johannesburg bourse after years where delistings have mostly outnumbered new entries. The main benchmark has surged 15% in dollar terms since June, spurred by the formation of a business-friendly governing coalition.

Boxer’s growth story is an attractive one in a market that’s starved for growth, said Meryl Pick, a fund manager at Old Mutual Invest.

“Because there’s been such a shortage of new listings, there will be a lot of interest in it,” she said. “That interest could potentially push it to quite high levels, especially initially and then over time. As the company performance unfolds, it’ll find a more consistent level.”

The Boxer IPO forms part of a turnaround plan by Pick n Pay Chief Executive Officer Sean Summers to recapitalise the South African supermarket chain and stem years of market-share declines. Pick n Pay raised an additional 4 billion rand through a rights issue earlier this year.

Boxer, which caters to the lower end of the grocery market, has 500 outlets across South Africa, adding half of those in the last seven years. Pick n Pay will still own at least 65.6% of Boxer following the listing.

“There’s lots of excitement on Boxer,” said Jithen Pillay, a portfolio manager at Cape Town-based Allan Gray. It “has grown sales quite substantially and has the potential to still grow sales quite materially. It’s probably one of the brightest spots of South African retail.”

Rand Merchant Bank, Morgan Stanley, Absa Group and Standard Bank Group were joint global coordinators and bookrunners of the offering.