Letshego revives local index
Existing shareholders of Letshego Holdings Namibia are willing to sell 20% or N$470 million of LHN's issued shares.
After a quiet four years, investors can now look forward to new and fresh opportunities on the local index of the Namibian Stock Exchange (NSX) when Letshego Holdings Namibia (LHN) lists on 28 September this year.
Prior to this, the most recent new listing on the local index was on 20 June 2013 when Bank Windhoek Holdings – now known as the Capricorn Investment Group Limited listed.
The initial public offering (IPO) of Letshego Holdings Namibia opened on Friday of last week and the existing shareholders are now willing to offer 20% or N$470 million of the company as issued shares. The shares total 100 million and are available at N$4.70 apiece.
Currently, the Botswana-listed Letshego Holdings Limited (LHL) owns 85% of LHN, while the Namibian group, Kumwe Investment Holding Ltd, owns the remainder. The Bank of Namibia (BoN) provided LHN with a permanent banking license on the condition that at least 40% of the company is locally owned by 2020. This forms part of BoN's financial sector strategy to promote local ownership of the banking sector in the country.
LHN has already indicated that more shares may be made available to the open market so that the group can meet the conditions of the Bank of Namibia before the 2020 deadline.
According to the company's IPO, Namibian citizens, and those from a previously disadvantaged background will have preference in the allocation of shares. According to Ester Kali, the group's chief, LHN wants to enable the maximum public participation in the group's shares. She made these statements to the media on Friday.
Kali added that empowering Namibian citizens as well as distributing profits through the growth in value of the shares and dividends are some of the benefits of Letshego's listing.
“It is also an opportunity for Letshego to increase its profile amongst members to the public, investors and target markets as well to speed up economic growth through the stimulation of investment and entrepreneurship.”
Prospective shareholders of the company must apply for a minimum of 200 shares, thus N$940. Thereafter, a further 100 shares can be applied for at one time. A committee will decide how many shares each applicant will receive.
LHL, LHN's majority shareholder, is one of the fastest growing local companies in Botswana. With a market capitalization of roughly US$450 million, it is one of the top 50 listed companies in sub-Saharan Africa, excluding South Africa. The company, like its subsidiary LHN, focuses on inclusive financial service delivery.
LHN represents more than 20% of the assets and profits of the Botswana LHL. After its operations in Botswana, LHN makes the biggest contribution. Since 2008, LHN has made loans exceeding N$3 billion to LHN in Namibia.
LHN's profit for this financial year to end December 2016 stood at N$329.95 million, roughly 21.3% more than in the previous financial year. According to the company's prospectus, its profits are projected to grow by 2.6% to roughly N$338.7 million. For the 2018 financial year, profits of N$397.7 million are projected.
Basic earnings per share (EPS) in 2016 stood at 66 cents, an increase of 22% compared to 2015. This year, an EPS of 68 cents is expected and in 2018, 80 cents.
LHN's IPO closes on Friday, 22 September at 12:00.
Jo-Maré Duddy
Prior to this, the most recent new listing on the local index was on 20 June 2013 when Bank Windhoek Holdings – now known as the Capricorn Investment Group Limited listed.
The initial public offering (IPO) of Letshego Holdings Namibia opened on Friday of last week and the existing shareholders are now willing to offer 20% or N$470 million of the company as issued shares. The shares total 100 million and are available at N$4.70 apiece.
Currently, the Botswana-listed Letshego Holdings Limited (LHL) owns 85% of LHN, while the Namibian group, Kumwe Investment Holding Ltd, owns the remainder. The Bank of Namibia (BoN) provided LHN with a permanent banking license on the condition that at least 40% of the company is locally owned by 2020. This forms part of BoN's financial sector strategy to promote local ownership of the banking sector in the country.
LHN has already indicated that more shares may be made available to the open market so that the group can meet the conditions of the Bank of Namibia before the 2020 deadline.
According to the company's IPO, Namibian citizens, and those from a previously disadvantaged background will have preference in the allocation of shares. According to Ester Kali, the group's chief, LHN wants to enable the maximum public participation in the group's shares. She made these statements to the media on Friday.
Kali added that empowering Namibian citizens as well as distributing profits through the growth in value of the shares and dividends are some of the benefits of Letshego's listing.
“It is also an opportunity for Letshego to increase its profile amongst members to the public, investors and target markets as well to speed up economic growth through the stimulation of investment and entrepreneurship.”
Prospective shareholders of the company must apply for a minimum of 200 shares, thus N$940. Thereafter, a further 100 shares can be applied for at one time. A committee will decide how many shares each applicant will receive.
LHL, LHN's majority shareholder, is one of the fastest growing local companies in Botswana. With a market capitalization of roughly US$450 million, it is one of the top 50 listed companies in sub-Saharan Africa, excluding South Africa. The company, like its subsidiary LHN, focuses on inclusive financial service delivery.
LHN represents more than 20% of the assets and profits of the Botswana LHL. After its operations in Botswana, LHN makes the biggest contribution. Since 2008, LHN has made loans exceeding N$3 billion to LHN in Namibia.
LHN's profit for this financial year to end December 2016 stood at N$329.95 million, roughly 21.3% more than in the previous financial year. According to the company's prospectus, its profits are projected to grow by 2.6% to roughly N$338.7 million. For the 2018 financial year, profits of N$397.7 million are projected.
Basic earnings per share (EPS) in 2016 stood at 66 cents, an increase of 22% compared to 2015. This year, an EPS of 68 cents is expected and in 2018, 80 cents.
LHN's IPO closes on Friday, 22 September at 12:00.
Jo-Maré Duddy
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