New listing refreshes BSE
Isaac Pinielo | Monday December 15, 2014 16:07
Imara chief executive officer, Gregory Matsake, said the listing will cheer the local bourse, which has not had a listing in the recent past. This is the first equity listing for 2014.
The BSE has listed three bonds and an Exchange Traded Fund (ETF) this year. “As a fledgling exchange, the BSE needs as many listings as it can get so as to grow. This listing is yet another addition to the growing list of opportunities that are available in the market,” he said. Matsake, however, indicated that Magnum, which has a primary listing on the Australian Securities Exchange (ASX), does not have to migrate the shares to the BSE, explaining that since dual listed shares are freely fungible and transferable, there is always an arrangement put in place to facilitate cross-border share movements.
He said since the listing was by way of introduction, where a company does not make any issuance, shares can be moved onto the Botswana register by investors in the other market (primary listing) placing their shares on the Botswana register for trading on the local bourse.
“Alternatively local brokers can ‘make the market’ by acquiring such shares elsewhere for onward trading locally,” he emphasised.
On its listing, Magnum flouted 850,375,705 common shares of no par value and since it listed on December 1, some 184,976 shares have already changed hands on the local bourse.
“A listing in itself is a process, so now that this aspect of company life has been dispensed with, management will be looking to continue with the exploration programme that they have been undertaking, as part of bringing the project to production to create value for shareholders,” stated Matsake.
Given that the company is still at exploration stage and therefore not earning any income from whatever assets that sit in the ground it holds, Matsake said investment in the entity is speculative at this stage, adding that the performance of the stock will be based on speculation and interpretation of whatever updates the company issues as it develops its project.
The company, which engages in the exploration of coal bed methane and petroleum, pointed out in a pre-listing statement that among other things, the listing will facilitate direct trading and investment in Magnum shares by investors in Botswana and in the Southern African region. It added that the listing will enhance investor community awareness of the group, thereby enlarging its investor base and increasing trading in its shares. The statement also noted that the listing will also provide a further funding mechanism through which the company may structure and fund opportunities in the exploration and development of its exploration and development activities in the country and elsewhere.
“This will be done in order to deliver enhanced liquidity and greater access to capital from both retail and institutional investors resident in Botswana and the global resource investment community,” it said.
Equally, the statement added that Magnum wants to be part of a growing list of international resources companies who have obtained a listing on the BSE; and to promote Botswana as an attractive investment destination.
However, it revealed that no capital will be raised on the admission on the BSE and the company will not be undertaking any capital raising in conjunction with the listing.
The company owns 100 percent of Energy Botswana Pty Ltd, which in turn holds 100 percent of two intermediary companies in Mauritius – Gasco International Limited and Nata Energy Mauritius Inc. Gasco International Limited, in turn, holds 100 percent of Baobab Resources Limited in Botswana whose main asset is petroleum exploration licence 154/2012.
Nata Energy Mauritius Inc holds 100 percent of Nata Energy whose main assets are prospecting licences in the central project area as well as prospecting licences in the northern project area.