FPC to list

SHARE   |   Saturday, 30 April 2016   |   By Kabelo Adamson

Another property company will soon arrive at the Botswana Stock Exchange (BSE) when Far Property Company (FPC) list on the local bourse on Wednesday after the company was a given a go ahead to list its linked units. The company has been conducting its Initial Public Offering (IPO) which was concluded on the 21st of April this year. In a statement, the company said 646 applicants for 24 035700 linked units of P2.57 each were received during the IPO. Of the total number of linked units, applications for 4 035 700 linked units were received from members of the public while applications for 20 000 000 linked units were received from institutional investors. It is said that members of the public will be allotted linked units equal to their applications, this is, receive the number of linked units applied for in full.

On the other side, FPC says 20 000 000 linked units are to be allotted and issued to institutional investors pursuant to the separate placing, under placing agreements. Before the IPO, FPC’s had two shareholders, Ramachandran Ottapathu and Farouk Ismail who both held 50 percent shareholding each and after listing and subsequent sale of units by the founders, Ottapathu and Ismail will hold 150, 000, 000 linked units valued at P385, 500, 000 representing 39.5 percent of the shareholding. His associates are expected to hold 250,000 linked units prized at P642.550 to represent 0.1 percent of the total shares. The public as defined in the Listing requirements will be issued 78,981,500 linked units which are valued at P202, 982,455 which reflects 20.7 percent of total shareholding. The remaining 0.2 percent of the total linked units will be held by other directors and their associates which is 768, 500 linked units at a value of P1, 975,045.

The total units to be listed amount to 380,000,000 and are valued at P976, 600,000. FPC, a variable rate loan stock company, was formed in 2010 and has 178 properties located in Botswana and South Africa. FPC property portfolio is valued at P1.2 billion as at 30 June 2015 with retail accounting for 43 percent and industrial for 42 percent while the remaining 15 percent is for residential. The company has an occupancy rate 95 percent. In 2015 the company generated revenue of P82.3 million and forecast to generate P108.8 million in 2016 and P147.3 million in 2017. On Wednesday, FPC will join other listed variable rate loan stock companies such as Letlole La Roan, New Africa Properties, Prime Time Holdings, RDC Properties and Turnstar Holding. In a response to the questions sent to him, FPC Co-Founder, Ottapathu said the IPO went according to their satisfaction and were able to raise P102 million which will be used for expansion of properties. He said the company will remain concentrated on retail commercial property as there is an opportunity for growth in that particular sector.