The listing of the country’s largest distribution company in the Fast Moving Consumer Goods (FMCG) CA Sales Holdings Limited is seen as a positive outcome of the Botswana Stock Exchange’s (BSE) efforts of luring companies to the bourse. CA Sales, which is involved in the business of distribution, full service retail execution business, and marketing and promotional as well as training, will become the second company to list on the BSE this year following the listing of Minergy a few months back. The BSE has been holding a series of open days across the country which came on the backdrop of the Annual Listings Conference in a bid to sell the stock market to both individuals and companies as an instrument for wealth creation. Since being appointed to the position of the BSE chief executive officer early 2016, Thapelo Tsheole has made it his priority to make the local stock market attractive to both individuals and companies to consider the BSE. What followed have been countrywide shows to sell the idea to even the remote areas which as figures from the BSE show, the contribution of local individual investors to turnover on the bourse is on the increase.
CA Sales shares are expected to debut on the BSE On November 9 this year if all goes according to plan following the opening of the Initial Public Offering (IPO) on Thursday last week which will close on November 1.The results of the IPO are to be published on November 6. With a total of 405 500 800 shares on offer before the IPO, CA Sales has put up 14 492 745 shares in the IPO and Placing which will reduce the number of shares held by shareholders prior to the IPO and placing. The existing shareholders will offload a total of 121 620 240 shares in the placing and are being sold at P3.45 per share. The largest shareholder in the company is a company called PSG Africa Limited at 52.80 percent followed by Export Marketing Investments Limited at 36.59 percent. After Export Marketing comes Jagdish Shah who prior to IPO issuing held a 4.82 percent stake in the company and would see the see figure reduced to 2.6 percent post placing.
The company says in its prospectus that has been made available that the rationale for listing is to raise capital for further organic growth and accretive merge and acquisition opportunities to allow it to access capital markets in order to raise equity capital in future, when required. CA Sales says it is also listing to provide shareholders with a liquid, tradable asset within a regulated environment, with a market-determined share price and also to give the general public an opportunity to acquire an equity stake in CA Sales and thereby share in its potential success in the future. The company’s service offering includes selling, merchandising, warehousing, distribution, debtors’ administration, marketing and promotion, point of sale warehousing and training. The group has offices and facilities in most SADC countries and its listing is expected to bring diversity to the local bourse and further boost the stock market.