BTCL�s �massive� shares uptake continues
Pauline Dikuelo | Thursday February 11, 2016 15:16
Under the IPO, which was opened on January 11 this year and is due to close on March 4, the government and BTCL are selling 462 million shares at P1 each with buyers eligible to buy a minimum of 1,000 shares.
According to Kennedy Kgomanyane of Stockbrokers Botswana, who are the sponsoring broker to the IPO, the IPO have received a good reception and are already preparing themselves for the final wave of offers to come during the later part of February.
“Batswana have certainly shown great interest and excitement for this IPO. There is clear evidence that they have taken time to learn more about shares as an investment option which can only be good for the BSE in the long term,” he said.
Kgomanyane added that future IPO’s will build off the back of the BTCL one and might result in an intense and active uptake.
The IPO is left with only two weeks before closure and the shares are expected to be listed on the Botswana Stock Exchange on April 8, 2016, where after trading will still be restricted to citizen investors only. The 462 million shares on offer comprise 212 million shares being sold by government and 250 million that are issued and sold by BTCL.
Analysts have also recommended people to buy the shares estimating that the current offer price of P1 represents an 80 percent discount on the upside potential of the shares.
“We strongly recommend investors to buy the stock during the IPO and also subsequent to listing as BTCL provides significant growth potential to investors,” researchers at Motswedi Securities have said.
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.