11 Apr 2016

The Botswana Telecommunications Corporation Limited (BTCL) has started trading on the Botswana Stock Exchange (BSE) after a record number of Batswana purchased shares, majority of them said to be first time investors.  

The corporation was the first to be privatised, with the general public owning 44 per cent, government retaining 51 per cent and 5 per cent left in the hands of BTCL employees.

The Minister of Infrastructure, Science and Technology, Mr Nonofo Molefhi, said the listing of BTCL in the local bourse presented an opportunity for Batswana across the country to participate in the economy through purchasing of shares.

“The government of Botswana has always envisaged seeing more Batswana partake in a pinnacle moment in the history of BTCL and our local economy, and today we see that this has become a reality,” he said, adding that their mandate was to ensure maximum citizen participation.

The minister said the BTCL IPO was officially launched in December last year, thus giving Batswana a record eight weeks to purchase shares. He said over 33 nationwide public education road shows and 61 activations were held.

The minister said 300 000 shares application forms and 30 000 prospectuses were printed and 1 000 000 pieces of educational information in English and Setswana (brochures and pamphlets) were distributed.

Minister Molefhi said the IPO launch also had a social media community of over 28 000. “These figures also testify to the thirst of Batswana for a diversified economy and new means of investment,” he said.

The minister said the listing had brought excitement in the country that even after closing the IPO, Batswana still wanted to know more about the capital market. “Today, we usher in thousands of new Botswana citizen shareholders in BTCL. Today, we welcome thousands of first time shareholders to the bourse,” he said.

He said the new entity was committed to adding value to all stakeholders and was resolute in its determination to be a leading, world-class telecommunications service provider and a true embodiment of the spirit of Botho.

The minister said by working with the BSE, government was changing the economic landscape of the country one step at a time. He said the opportunity had brought greater financial and economic inclusion, as Batswana, regardless of their educational or economic background, would be included in the activities of the local market.

“No matter your situation or your location, you had the right to own shares in BTCL,” he said. Minister Molefhi said he hoped other Batswana who had not been able to purchase shares would be able to do so in future.

The minister said during the IPO offering, Batswana shared information and supported one another. “From our local financial institutions to unions and public offices and local community leaders, to our media and indeed the many public figures and ordinary Batswana who served as ambassadors in their own right, I thank you,” he said.

A weekly market commentary from Motswedi Securities states that the BTCL IPO broke records as it opened 30 per cent higher and increased the domestic market cap to levels of P49.6 billion. “We could see some aggressive bids in the next few months, pushing the price up as those who were not fully allocated might want to increase their stakes within the telecommunications giant,” reads the commentary. ENDS