Leading South African poultry producer Rainbow Chicken listed on the Johannesburg Stock Exchange on Wednesday, as part of its unbundling from RCL Foods.

RCL Foods, whose brands include Selati sugar, Sunbake bread and Yum Yum peanut butter, says it is restructuring its portfolio to deliver sustainable earnings.

The spinning off of the Rainbow Chicken business will be completed with the distribution of newly listed shares to RCL shareholders on a one-to-one basis. The shares will start trading on July 1.

"Stepping out as a stand-alone entity marks a significant milestone for Rainbow, carving out a unique and competitive position in the market," CEO Marthinus Stander said in a statement.

Rainbow Chicken was founded in 1960 as a small family-owned business and has grown to become one of South Africa’s largest poultry producers, with 13.4 billion rand ($734.31 million)revenue in 2023.

The company is a fully integrated chicken meat producer, operating 165 farms and several processing plants as well as feed mills.

($1 = 18.2483 rand)

(Reporting by Nelson Banya; editing by Jason Neely)