(Adds details and trader comment)
JOHANNESBURG, May 4 (Reuters) - South African consumer food maker Libstar Holdings <IPO-LBRJ.J> raised its planned 1.5 billion rand ($119 million) in a share sale on Friday, ahead of a what will be the biggest Johannesburg stock market listing so far this year.
The initial public offering (IPO) was priced at 12.50 rand per share, at the bottom of the previously announced price range of 12.50 to 16 rand, and valuing the company at 8.5 billion rand.
The bulk of the money will be used to pay debt and to help the company expand, Libstar said in a statement.
The listing of the company, whose customers include upmarket food retailer Woolworths, comes a week after glass bottle maker consol backtracked on plans to float, citing an "environment not conducive to the offer achieving valuation objectives."
Libstar, which intends to float on the stock exchange on May 9, will enter a largely subdued equity market as the euphoric mood following the election of President Cyril Ramaphosa appears to be fading.
"I think the euphoria has died down a little bit and we are back down to basics," said Jacques Potgieter, equities trader at Avior capital markets.
"The market is starting to realise that maybe the economy will not pick up as quickly as they thought. They did run a little bit ahead of themselves. Valuations are just adjusting to more normalised market levels."
The JSE All-share index, the broadest measure of South African stock market performance, is down around 4 percent from the high notched up when Ramaphosa took charge of Africa's most industrialised economy in February.
Including the sale of shares from existing shareholders such as buyout firm Abraaj and the Public Investment Corporation, the IPO raised a further 1.5 billion rand.
Libstar's 27 business units offer consumer products that include specialised food such gluten-free baked products and household goods such as laundry detergents.
($1 = 12.6153 rand) (Editing by Tiisetso Motsoeneng and Mark Potter)