BTCL IPO breaks all records
By John Churu, Gaborone, Botswana
The recently concluded BTCL Initial Public Offering (IPO) has surpassed all expectations from some sections of the local business community who had predicted a low response to the IPO. “ As the doors closed on the BTCL IPO Offer period on the 4th of March 2016, we are delighted to announce that the count of submissions made by Batswana was well in excess of 40,000 offers across the Nation. BTCL is well on the way to becoming the first listed telecommunications company in Botswana,” said BTCL’s Anthony Masunga.
It will also have the largest number of shareholders in the country and on the Botswana Stock Exchange ("BSE") when it lists on the bourse, as anticipated, on the 8th April 2016.
“To put this into context, one needs to consider that prior to the IPO the BSE had in the range of only 20 thousand CSD accounts. We have at the very least doubled the number of people who participate in BSE listed shares as a form of wealth creation,” said Anthony Masunga, BTCL Chief Operating Officer. “Even more satisfying is that this double up is made up of Batswana 100%.”
There is great interest regarding how much has been raised by the Offer. The BTCL IPO process is regulated by the listings rules of the BSE. In accordance with those rules, a number of checks and balances are required to be undertaken, and BSE approval obtained, before the final IPO results are published. All will be concluded before the 8th of April 2016.
“What we can state is that we have received Offers for the 462 million shares that were available; meaning that we have managed to raise P462 million. The total Offers received are well in excess of this figure and thus we anticipate an oversubscription. This is a very humbling endorsement by Batswana who believe in what will become their business: BTCL. It also testifies that Batswana have accepted and embraced the privatisation agenda that PEEPA is driving on behalf of the Government,” said PEEPA CEO, Kgotla Ramaphane.
The work of the Allocation Committee has already commenced. As there is an oversubscription, the Committee will ensure that there is a fair and equitable allocation of shares among the applicants in line with the Prospectus and the BSE requirements.
“This truly was a historic opportunity and the response exceeded our every expectation. The reception we have received from Batswana has been nothing short of phenomenal and we are absolutely humbled to be able to assist Batswana to come to the fore to make history. When work on the BTCL IPO began, our aim was to ensure that nobody was left behind.
Every effort was made to ensure this, with the help of many, the results are clear for all to see. It is fantastic to see how many people we have been able to reach and how the dialogue on investment continues to grow. Batswana, we thank you for your passion, your thirst for knowledge, and your patriotism in what truly is a momentous milestone in our Nation’s history. We are thrilled to welcome new shareholders on board for an even stronger BTCL. BTCL ke ya rona rotlhe!” said BTCL Managing Director, Paul Taylor.
An Initial Public Offering, or IPO, is the first offer by a company of its shares for sale or subscription by members of the public. The Government is selling 49% of its shares in BTCL through an IPO. The Offer opened on 11 January 2016, and closed at 17h00 on 04 March 2016.
The Offer comprised 462,000,000 Shares of which 250,000,000 are to be issued and allotted by the Company and 212,010,000 Shares to be sold by the Selling Shareholder. All relevant information on the BTCL IPO is contained in the BTCL IPO Prospectus.