Following the extension of the offer period, which elapsed on the 30th of November, BancABC was set to list its shares on the Botswana Stock Exchange Limited (BSEL) on Thursday (13 December) morning.
Trading on the bank’s shares was scheduled to commence the same day.
Late last month, BSEL granted the bank a seven-day extension on the offer period, which was previously set to end on the 23rd of November.
Initially, BancABC had invited selected investors to apply to purchase up to 180 million shares at a price of P2.00 per share.
Sensing low turnout, the stock exchange granted the financial institution an extension of a week in order to accommodate greater participation of public investors in the offer.
On Wednesday, the bank released a statement revealing 148, 413, 991 shares were bought, which represents 20.5 percent of the bank’s total shares in issue.
“The offer will raise gross profits of 296.8 million,” reads part of the statement.
BancABC’s listing marks the bank’s return to the bourse following a four-year hiatus. However, this time around it returns as just the Botswana subsidiary, unlike in the past when the holding group was the one listed.
On the bourse, BancABC joins other major listed banks, among them: Standard Chartered, Barclays Bank Botswana and FNB Botswana.
BancABC is said to be the 4th most profitable bank in the country and the fifth largest by assets.
The listing is expected to further enhance the local capital market.
Speaking to Voice Money on Tuesday, Salome Makgatlhe, a Researcher at Motswedi Securities, stressed, “It is always a good thing when a new company lists.”
She noted that this provides more opportunities for locals to invest directly and indirectly (through pension funds).
“Additionally, it grows our capital market, which by extension makes it more attractive to international investors to participate,” Makgatlhe explained.