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BSE fired up for Listings conference

The Botswana Stock Exchange on Thursday held a media briefing for their upcoming 2nd annual listings conference to be held on the 9th of March.


In a written statement, the BSE says the theme for this year’s conference is “The BSE AS A GATEWAY FOR RAISING CAPITAL” and that the overall aim of the conference is to open up the BSE to the business community and bring together the BSE, private companies with the potential to list on the BSE, listed companies and experts in capital markets to discuss the value added to a private company by a listing on a stock exchange, the listing process and requirements.


“The BSE recognises the fact that the survival of the stock exchange is underpinned by its attractiveness towards not 0nly investors, but also companies. As such, the supply side of the market, being issuers of securities, has to be consistently nurtured. Because of this, it is essential that we as the BSE host this conference annually to spur the interest and to maintain a large platform where we can address issues relating raising capital by listing,” the statement read.


Still at the media briefing, Mr. Thapelo Tsheole, BSE CEO, told the audience that they go to the conference with strong intentions to increase the number of companies listed on the BSE. Mr. Tsheole said their efforts were emboldened by the success of the inaugural Listings Conference held last year. He sail while in 2016 they invited 150 companies, this year’s conference will be graced by the presence of the more than 300 invited businesses.


Mr. Tsheole said the BSE continues with its awareness raising campaigns in a bid to woe investors and companies. Furthermore, he said in these campaigns they invite listed companies to share their experience in the local bourse as well as other value adding companies, such as law and accounting firms, to help explain the journey to listing.


He explained that BSE contributed to the economy by offering different classes of investments. He said that they will be aggressive in pursuing the expansion of the BSE by increasing listed companies. To achieve this, Mr. Tsheole said they will be targeting mature citizen owned companies that have prospects to grow in the stock market even though it will prove to be a difficult undertaking.


“It is very difficult to convince Motswana to sell part of what they own,” he said before adding that this requires time as consultations tend to take long. The upbeat CEO said that they are pursuing some companies that they spotted at the previous conference and that talks and consultations are ongoing.


The timing of the conference comes at a time when BSE board has just recently approved the institution’s new 2017-2021 strategy that is big on expansion. In crunching the numbers, Mr. Tsheole said, the currently listed 34 companies make up 34% of the country’s GDP but under the new strategy are targeting to hit 40% of the GDP in five years.

 

He says this will be achieved through growing the number of domestic listed companies from 24 to 30. Mr. Tsheole said this will not be easy as it is difficult to get a listing in African stock markets. Still on the numbers, the BSE seeks to increase foreign listed companies from 10 to 15, number of listed bonds from 39 to 50 and increase the number of listed Exchange Traded Funds (ETFs) from 4 to 10.


“The strategy is very clear. It’s in the numbers,” said Mr. Tsheole. The BSE CEO says not only will they increase the number of listed companies but they are also introducing other asset classes. Currently the BSE offers four asset classes; Equities, Corporate and Government Bonds and ETFS. Amongst the touted investment products to be introduced are derivatives, Commercial Papers and Certificates of deposit.


Mr. Tsheole says their recent efforts align with their enduring interest to see many citizens participating in the stock market. To this end, the BSE will try to increase the number of investors in the BSE from 78000 to 100000 in 5 years. He said these are the same people who are powering the small, medium and macro enterprises (SMMES). Mr. Tsheole then said SMMEs are the backbone of the economy yet face immense challenges.


“There is a critical need for corporate financing especially in the SMMEs sectors,” Mr. Tsheole explained and also added that they are encouraging other stakeholders to come on board to solve this challenge. He said accounting and law firms can provide their expertise to help SMMEs access the appropriate funding method. Mr. Tsheole said part of the efforts to help the SMMEs may include introducing a specialised SMME board which will have special listings requirements.


The media was also briefed by Ms. Tebogo Keepetsoe, Public Relations, Communications and Marketing manager at Botswana Insurance Holdings Group (BIHL). BIHL is the diamond sponsor for the upcoming conference. “BIHL group has been a long standing listed company on the BSE. And I think if anything, it’s important that I share some thoughts on our BIHL journey to listing. And I’d also like to share on some key aspects that we have found of benefit from being a listed company,” she said.


Ms. Keepetsoe says BIHL has enjoyed a long history at the BSE, starting in 1991 with an oversubscribed initial public offering (IPO) that floated shares at 0.22t, and 26 years later the shares are trading at more than P17. She says as the main sponsors of the upcoming listings conference, it is a testament of their belief in the listing process and as a company they hope it will encourage other local companies to list on the BSE, especially if they are reviewing their growth strategies.


She said some of the benefits that accrued to them after listing include access to large scale fundraising as well as increased exposure to raise asset value through acquisitions. Moreover listing has brought them closer with the public and potential investors. According to Ms. Keepetsoe, this has greatly enhanced the group’s credibility and raised its corporate profile to expand in other markets.


“The BSE itself is an incredibly successful bourse to list on. It currently stands as the third largest in the region, in terms of market capitalisation. A feat which, if I may, commend Mr. Tsheole and his team for achieving at such a phenomenal pace, considering that our local economy still has a lot of growing to do,” she said.  


The BSE also raised similar praise from Ms. Tumi Ramsden, Head of Corporate Affairs, Brand and Marketing at Standard Chartered bank Botswana, who said that the bank shares a fruitful relationship with the BSE ever since it listed when the stock market was still at its infancy. Ms. Ramsden says the listings conference provides a platform to participants to find opportunities and collectively contribute to the growth and health of the economy.

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Matsheka seeks raise bond program ceiling to P30 billion

14th September 2020
Dr Matsheka

This week Minister of Finance & Economic Development, Dr Thapelo Matsheka approached parliament seeking lawmakers approval of Government’s intention to increase bond program ceiling from the current P15 Billion to P30 billion.

“I stand to request this honorable house to authorize increase in bond issuance program from the current P15 billion to P30 billion,” Dr Matsheka said. He explained that due to the halt in economic growth occasioned by COVID-19 pandemic government had to revisit options for funding the national budget, particularly for the second half of the National Development Plan (NDP) 11.

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Lucara sits clutching onto its gigantic stones with bear claws in a dark pit

14th September 2020
Lesedi La Rona

Botswana Stock Exchange (BSE) has this week revealed a gloomy picture of diamond mining newcomer, Lucara, with its stock devaluated and its entire business affected by the COVID-19 pandemic.

A BSE survey for a period between 1st January to 31st August 2020 — recording the second half of the year, the third quarter of the year and five months of coronavirus in Botswana — shows that the Domestic Company Index (DCI) depreciated by 5.9 percent.

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Botswana Diamonds issues 50 000 000 shares to raise capital

14th September 2020
Diamonds

Botswana Diamond PLC, a diamond exploration company trading on both London Stock Exchange Alternative Investment Market (AIM) and Botswana Stock Exchange (BSE) on Monday unlocked value from its shares to raise capital for its ongoing exploration works in Botswana and South Africa.

A statement from the company this week reveals that the placing was with existing and new investors to raise £300,000 via the issue of 50,000,000 new ordinary shares at a placing price of 0.6p per Placing Share.

Each Placing Share, according to Botswana Diamond Executives has one warrant attached with the right to subscribe for one new ordinary share at 0.6p per new ordinary share for a period of two years from, 7th September 2020, being the date of the Placing Warrants issue.

In a statement Chairman of Botswana Diamonds, John Teeling explained that the funds raised will be used to fund ongoing exploration activities during the current year in Botswana and South Africa, and to provide additional working capital for the Company.

The company is currently drilling kimberlite M8 on the Marsfontein licence in South Africa and has generated further kimberlite targets which will be drilled on the adjacent Thorny River concession.

In Botswana, the funds will be focused on commercializing the KX36 project following the recent acquisition of Sekaka Diamonds from Petra Diamonds. This will include finalizing a work programme to upgrade the grades and diamond value of the kimberlite pipe as well as investigating innovative mining options.

Drilling is planned for the adjacent Sunland Minerals property and following further assessment of the comprehensive Sekaka database more drilling targets are likely. “This is a very active and exciting time for Botswana Diamonds. We are drilling the very promising M8 kimberlite at Marsfontein and further drilling is likely on targets identified on the adjacent Thorny River ground,” he said.

The company Board Chair further noted, “We have a number of active projects. The recently acquired KX36 diamond resource in the Kalahari offers great potential. While awaiting final approvals from the Botswana authorities some of the funds raised will be used to detail the works we will do to refine grade, size distribution and value per carat.”

In addition BOD said the Placing Shares will rank pari passu with the Company’s existing ordinary shares. Application will be made for the Placing Shares to be admitted to trading on AIM and it is expected that such admission will become effective on or around 23 September 2020.

Last month Botswana Diamond announced that it has entered into agreement with global miner Petra Diamonds to acquire the latter’s exploration assets in Botswana. Key to these assets, housed under Sekaka Diamonds, 100 % subsidiary of Petra is the KX36 Diamond discovery, a high grade ore Kimberlite pipe located in the CKGR, considered Botswana’s next diamond glory after the magnificent Orapa and prolific Jwaneng Mines.

The acquisition entailed two adjacent Prospecting Licences and a diamond processing plant. Sekaka has been Petra’s exploration vehicle in Botswana for year and holds three Prospecting Licenses in the Central Kalahari Game Reserve (Kalahari) PL169/2019, PL058/2007 and PL224/2007, which includes the high grade KX36 kimberlite pipe.

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