Botswana has postponed the long-awaited IPO of incumbent Botswana Telecommunications Corporation (BTCL), saying some potential investors need more time to get to grips with the process and organise funding.
The Ministry of Transport and Communications…
Botswana has postponed the long-awaited IPO of incumbent Botswana Telecommunications Corporation (BTCL), saying some potential investors need more time to get to grips with the process and organise funding.
The Ministry of Transport and Communications said in a statement that recent meetings with local potential investors showed that some, particularly individual citizens, have a limited understanding of IPO processes.
Potential investors have also asked for “ample time” to organise funding to buy shares, suggesting the slated launch date of 7 November is too close, the ministry noted.
As such, the ministry has decided to extend the awareness campaign for the listing.
The new IPO launch date will be before 31 December 2014 and the offer period will run for eight weeks, the ministry said.
“These initiatives are intended to enhance other on-going activities that are geared towards ensuring that as many citizens as possible prepare and participate in this momentous opportunity.”
The ministry stressed that the interest in the IPO process so far has been “phenomenal”.
Transport and communications minister Nonofo Molefhi revealed a few details about the planned listing during a mid-September press conference, saying the government will offer 49% of BTCL’s shares.
Of those, 44% will be made available to local individuals and companies while the remaining 5% will be retained for BTCL employees via an employee share ownership programme.
The privatisation of the telco, founded in 1980, has been in the pipeline since 2010 but financial and regulatory hurdles have so far obstructed it.
BTCL provides a range of services, including fixed-line, mobile, internet wholesaling and data services. It is Botswana’s third-largest mobile operator under the Be Mobile brand. BTCL reported revenues of Pk1.38bn (US$145.87m) for 2011/2012.
