Stanbic Bank Botswana will today begin the process of offering more than 319 million of its shares for sale to public and institutional investors through an Initial Public Offering (IPO).
According to the bank listing prospectus, the offer comprises up to 319 362 050 existing ordinary shares of no par value, being 20 percent, offered for sale at P4.30 per Share: 255.4 million shares by way of Private Placement to selected institutional investors, and 63.9 million shares by way of Public Offer.
At the Offer Price the Offer size is approximately P1.37 billion, implying a market capitalisation of approximately P6.87 billion for the bank. The Selling Shareholder is Stanbic Africa Holdings Limited, which is a wholly owned subsidiary of Standard Bank Group Limited.
It holds 100 percent of the pre-Listing Stated Capital.
No new Shares will be issued and all proceeds will accrue to the Selling Shareholder.
According to the listing prospectus, the Bookrunner has received irrevocable undertakings from institutional investors for up to 767.9 million Offer Shares, representing 240 percent of the Offer, subject to the Broker Placing and final allocation.
At least 63.9 million Offer Shares (P274.65 million) have been made available to the Sponsor for placing with its clients.
The Public Offer is open to natural persons and legal entities. Applications must be for a minimum of 350 Shares and thereafter in multiples of 10 Shares, paid in full in Pula without deduction or set-off.
Stanbic bank which has been operating in Botswana since 1992, with 14 branches countrywide, has offered a minimum subscription of 159.7 million shares (50% of the Offer Shares, approximately P686.63 million.
The bank says if this is not reached by the closing date, the Offer will not proceed and all monies will be refunded in full, without interest. In the case of oversubscription, Stanbic says shares may be allocated pro rata or on another equitable basis, and that no applicant will receive fewer Shares than another who applied for the same number of Shares or fewer.
The Stanbic IPO follows those of Kwa Nokeng Oil, Continental Reinsurance, and Dangote Refinery IPO this year alone.
Before that, the last IPO on the Botswana Stock Exchange (BSE) was in 2017 through CA Sales.
