Merchandise distribution company CA Sales debuted on the Botswana Stock Exchange (BSE) this past Thursday, becoming the second company to list this year. The listing follows what the company leadership hail as a successful Initial Public Offering (IPO) where P470 million was raised. BSE CEO, Thapelo Tsheole said, this listing of CA Sales is a vote of confidence on the local bourse as more international companies prefer to list here. He said this shows that the local stock market is growing by attracting big reputable companies that have the option to list in other markets. Tsheole said there is a lot of appetite by both companies and individuals on the stock market, announcing that more listings will come in the next few months without disclosing the names of the companies. CA Sales becomes the second company to list this year following the listing of Minergy – a coal mining company – a few months ago. The company operates within the Fast Moving Consumer Goods (FMCG) industry delivering services to blue chip manufacturers both locally and internationally. Its services include selling, merchandising, warehousing, distribution, debtors’ administration, marketing and promotions, point of sale warehousing and training. The group has offices throughout Botswana, Swaziland, Namibia, South Africa, Lesotho, Zambia and Mozambique. The company represents major brands such as Heineken, Nampak, Nestle, Kelloggs, Tiger Brands and many others.
CA Sales had put up a total of 121 620 240 shares which belonged to existing shareholders up for grabs at a price of P3.45 a share. The largest shareholder in CA Sales is a company called PSG Africa Limited which had owned 52.80 percent followed by Export Marketing Investments Limited at 36.59 percent and Jagdish who prior to listing owned 4.82 percent stake. His stake has now been reduced to 2.6 percent. The company says in its prospectus 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.