Over 1,000 offers a day for BTCL shares
Staff Writer | Tuesday January 26, 2016 18:00
Under the Initial Public Offer (IPO), which opened two weeks ago, government and BTCL are selling 462 million shares at P1.00 each with buyers eligible to buy a minimum of 1,000 shares.
According to BTCL, Batswana have come out in record numbers to submit their offers for the shares.
Paul Taylor, the managing director of BTCL, said: “On average, over 1,000 offers (applications) have been received per day at Barclays Bank branches across Botswana. With the extensive Offer Period Closing only on the 4th of March 2016, it is anticipated that Batswana will continue to make the most of this historic opportunity to become shareholders in BTCL.
“The reception we have received from Batswana has been simply amazing. We are humbled by stories of how some have raised their funds to be able to offer for these shares.”
No transactions costs are be levied on the buyers, although investors are required to open a Central Securities Depository (CSD) account with the Botswana Stock Exchange (BSE).
BTCL shares are expected to be listed on the BSE on the 8th of April, 2016, where after trading would still be restricted among citizen investors only.
The 462 million shares on offer comprise 212 million shares being sold by government and 250 million being issued and sold by BTCL.
In preparation for the privatisation, BTCL affected an 800 for one share split to create 800 million total shares, which are wholly owned by the government. BTCL’s issue of a further 250 million shares will take the company’s new total shares in issue to 1.050 billion shares.
“BTCL will issue 250 million shares to raise P250 million to be applied as working capital and to fund capital expenditure in relation to the growth of the company,” reads the prospectus.
Post the listing, government will retain 51 percent of the 1.05 billion shares while the workers will hold five percent with the remaining 44 percent expected to be in public hands.
An employee share trust has been established which will hold 52 500 000 shares (44 percent) as on the day of listing of the company on the BSE.
While investors will be required to purchase a minimum of 1,000 shares in multiples of 100, no ceiling has been placed on the number of shares that can be bought. The allocation of the shares will be determined by an allotment and allocation committee.
BTCL, which is the first company to list on the local bourse’s main board since Choppies four years ago, posted an adjusted profit of P146 million in the year ended March 2015. The company is however expected to record a loss after tax of P127 million in the year to March 2016 due to a large impairment charge, before it bounces back to a profit of P114 million in 2017.
The prospectus, which holds further financial details of the company and growth prospects, is being distributed through BTCL offices, Barclays Bank branches in Botswana, select BotswanaPost branches in Botswana, and select Choppies branches.
BTCL was formed ahead of the separation of the incumbent operator, Botswana Telecommunications Corporation (BTC) into two entities incorporated under the companies Act, being BTCL and Botswana Fibre Networks (BoFiNet) which is wholly owned by the government.