Though it’s one of the world’s largest furniture retailers, the Steinhoff International Holdings name is not well known outside South Africa, but the publicly held company plans to raise its global profile by moving its primary stock exchange listing to Germany, BusinessDayLive reports.

Despite doing most of its business in Europe, about two thirds of Steinhoff’s shares are held in South Africa, while U.S. investors own 12 percent, the report said.

Steinhoff generated 61 percent of its revenue from continental Europe and the U.K. in the six months ending in December — up from 55 percent a year earlier. This is
the result of a number of deals, including buying Austria-based furniture retail group
kika-Leiner, the report said.

Moving its primary listing to Europe will be “good news” for Steinhoff’s shareholders because it will provide the company with greater access to capital and raise its global profile, the company said.

The company said Monday that it was approved by South African Reserve Bank to look
at a primary listing in Frankfurt from September, while keeping an inward listing on the Johannesburg Stock Exchange.

The company’s headquarters will remain in South Africa and so will its top executive, said CEO Markus Jooste.

Other South African multinationals which moved their primary listings offshore have moved their headquarters with it, the report said.

While Steinhoff evaluates an anticipated listing in Frankfurt, Jooste said the company is reducing its holdings in Steinhoff’s industrial division — KAP Industrial
Holdings — to less than 50 percent, “to deconsolidate and to equity account KAP.”

This will improve KAP’s liquidity, and reduce Steinhof’s KAP ownership stake from 61.8 percent to 45 percent.

Steinhoff’s share price rose 1 percent to 57.20 rand Tuesday, while KAP’s share price fell 7.89 percent to 3.85 rand, BusinessDayLive reports.

Steinhoff’s decision to move its primary listing to Europe was “good news for South
African investors,” said Wayne McCurrie, a senior portfolio manager fro Momentum Asset Management. It will improve Steinhoff’s profile among global investors.

“Listing in Germany will dramatically improve that profile, so there may just be more demand for Steinhoff shares because of that listing. Secondly, the listing in Germany more correctly reflects where they do business — this actually is a European company,” McCurrie told BusinessDayLive.

Mr McCurrie said the better reflection of where the group carried out most of its business could lower its perceived risk profile, which could help to improve the share price over time. It would also be cheaper to raise capital in Europe than in South Africa. “Almost all of their (bond) financing is in Europe, which they got at very good rates,” he said.

Steinhoff manufactures and sells retails furniture and household goods in Europe, Africa and Australia. It also owns diversified industrial businesses in Southern Africa including supply chain solutions, passenger services, timber products and manufacturing operations across diverse industries, according to its website.