Cresta Marakanelo Limited, Botswana‘s largest hotel operator, will commence its listing on the Botswana Stock Exchange this Monday (June 28) following the country’s widest and biggest truly public offering of shares to date.
Botswana Development Corporation (BDC) made available 40,7 million shares via the IPO, significantly reducing its stake in Cresta with the objective of widening Cresta’s ownership base and securing greater participation by private Botswana citizens.
Ahead of the IPO, a private placement of 18,5 million shares to three local institutions was significantly oversubscribed.
Grant Molyneaux, corporate finance executive at Imara Botswana Limited, the mandated financial advisors for the transaction, commented: “The key objectives of the BDC were met. One of the crown jewels of the nation’s tourism industry is now owned to a significant extent by Botswana citizens.
“The magnitude of the public offer in this IPO is without precedent in this country and was very successful with almost 94% of the available shares taken up by the market. In terms of an undertaking by the BDC included in the offer, those shares not taken up will be retained by the BDC.
“The way is now clear for the entire equity of Cresta to be listed on the main board of the Botswana Stock Exchange.”
Of the 40,7 million shares on offer, 38,210,981 were subscribed for at an offer price of P1.45 a share, equating to a subscription level of 93.88%.
Mr Tawanda Makaya, chief executive officer of Cresta, noted: “All members of the public who subscribed for shares have been given their maximum allocation. There are no disappointed applicants.
“Over 3,400 citizens of our country took advantage of the offer, ensuring the high level of participation that the BDC and ourselves had hoped for.
“We are proud to welcome our new owners and salute them for taking a stake in the future of our country and in an area of huge growth potential – our nation’s tourism industry.”
The BDC retains a 27.35% stake in Cresta’s equity. Some 3,700,000 shares have been placed into an employee share trust.