BTCL shares on sale

SHARE   |   Monday, 11 January 2016   |   By Kabelo Adamson
From left to right; Benjamin Motshabi, Tshepiso Shai, Class Mampadi From left to right; Benjamin Motshabi, Tshepiso Shai, Class Mampadi

As Botswana Telecommunications Corporation Limited (BTCL) makes its shares public, it remains to be seen who among the citizens will end up with a slice.
A few members of the public interviewed on Friday cited various reasons such as being broke to lacking knowledge about trading of shares and their importance.


Tshepiso Shai
Shai said she had an interest in buying of shares including those of BTCL which go on sale tomorrow (Monday). “Buying shares is a good idea as one would also be securing the future of their kids but if I had the means I would have long purchased but the problem is I am unemployed therefore cannot to afford to buy them,” she said. She said she always had interest in purchasing the shares but has been limited by a financial situation. According to Shai, it is good move by BTCL to float its shares on the BSE as it will empower the locals and give them an opportunity to be part of the organisation. Shai said she will encourage her relatives and friends to consider buying shares as it is a viable investment.


Class Mampadi
A university graduate, who completed his studies last year, says he currently does not have money to take part in the BTCL IPO. “I will consider buying shares in the future, and only after studying about those companies then will decide which company to invest in,” said Mampadi, who said he has a lot of interest in buying of shares.


Benjamin Motshabi
Motshabi says he is aware of the BTCL IPO and has been considering to visit the company to make more enquiries about it only then will he make a decision of whether to but the shares or not. The Ministry of Finance and Development Planning employee said he will enquire about the shares on Monday as there is still more time for one to make a decision. “One has to have a clear background about the company and the direction it intends to take before taking a decision to invest in it,” he said.


Tsholofelo Simon
“I have only read about the BTCL IPO on the media and will in the next coming days find on how those shares will be of benefit to us Batswana,” Simon said.
Simon, like others who were interviewed, said for BTCL to offer its shares to the public is selfless move by the government to privatise public companies, adding that government should do the same with other public enterprises. On whether she will take part in the BTCL IPO, Simon said she will do so after having more information about the company and if it appeals to her.


The IPO
BTCL will start conducting its IPO on Monday at 0900 hours, according to its listing prospectus. The IPO, expected to run for a period of eight weeks until 04 March 2016, will see 462 million shares made available for purchase during the offer period. The shares will be sold at P1.00 per share with a minimum subscription of 1000 shares per investor. A maximum number of shares one can subscribe for has not been set, however in the event of an over-subscription, it is noted that the order of preference in terms of allotment and allocation will be natural persons who are citizens of Botswana followed by corporate entities registered or operating locally. Proper trading is expected to start on 08 April 2016 when BTCL finally lists on the Botswana Stock Exchange (BSE).


The company expects to raise P250 million during the offer period which will be used as a working capital and to fund capital expenditure in relation to the growth of the company. According the BTCL listing prospectus, which was released towards Christmas Day, the purpose of listing the organisation which was formed in 1980 is to provide the citizens of Botswana with an opportunity to share the company’s growth and its profits. The listing is again expected to raise the company profile and investor awareness of BTCL locally and also enable the government to privatise BTCL in line with the Privatisation Master plan of 2005 and lastly to raise equity capital for the company.


In an interview on Friday, BSE Deputy CEO, Thapelo Tsheole, said it is in their interest to see very high participation in the BTCL IPO. He said BTCL IPO promotes economic empowerment and financial inclusion. “The BSE always runs education campaigns to educate investors and potential investors about a plethora of issues related to investing in the stock market, including participation in IPOs,” said Tsheole. He said for this particular IPO, the BSE has partnered with Public Enterprise Evaluation and Privatisation Agency (PEEPA) on its countrywide shows that will begin shorty.

IPO Timeline

Publication date of the Prospectus

The date the BTCL IPO Prospectus becomes available to all members of the public.

Monday 21 December 2015

Opening date of the Offer

This is the first date for receipt of applications and payment, i.e. applications start being received at Barclays Bank branches Nationwide

09:00 Monday 11 January 2016

Expected closing date of the Offer and Last date for application for the Offer

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This is the last date for receipt of applications and payment, i.e. applications no longer received after this date

17:00 Friday 04 March 2016

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Settlement date and expected Listing Date

All applications now evaluated and shares allocated to applicants. BTCL lists / BTCL shares are “floated” on the Main Board of the Botswana Stock Exchange

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09:00 Friday 08 April 2016