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Frequently asked questions on the BTCL IPO

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What is an IPO?
An Initial Public Offering, or IPO, is the first offer by a company of its shares for sale or subscription by members of the public.  The Government is selling 49 percent of its shares in BTCL through an IPO.

Does this IPO mean BTCL is being sold?
Yes; however, Government is only offering 49 percent of the shares of the company, of which 5 percent has been reserved for BTCL employees. The remaining 51 percent of the shares will be retained by government.

What percentage of BTCL will be put on the market?
49 percent of the shares of BTCL will be offered to the public. Of this, 5 percent will be offered to citizen employees of BTCL. The remaining 51 percent of the shares will be retained by Government.

How many shares are being offered?
The Offer comprises 462,000,000 Shares of which 250,000,000 are to be issued and allotted by the Company and 212,010,000 Shares to be sold by the Selling Shareholder. Simply put, 462,000,000 Shares of BTCL are offered to the public through this IPO
How will the IPO process ensure that small investors’ interests are safeguarded?

A share allotment strategy is in place to ensure that all citizens are given equal opportunity to buy BTCL shares. Essentially all offers are treated as equal. However, smaller investors will be given preference to ensure that all their offers are accepted in the event there is an oversubscription. This means, in the event of an oversubscription, you are not guaranteed to be allocated all shares you apply for.

What happens if there are more Offers than shares on offer?
This situation would be called an oversubscription. The Allotment Committee would then sit and decide how to ensure as wide a spread as possible is achieved of shares allocated. In an oversubscription situation one may not receive the total number of shares they applied for. The funds would be returned to the investor for the shares they did not get.

What is an IPO Opening/Offer Opening?
The opening of the IPO or the Offer refers to the start date for the period in which parties interested in purchasing shares can apply for them. Applications for the shares can be made throughout the stipulated period in which they will be on offer. The Offer Period is from 09h00 on 11th January 2016 to 17h00 on 4th March 2016. Offers WILL NOT be received after this date.

When will the BTCL IPO open?
The BTCL IPO offer period, the period in which parties interested in purchasing shares can submit applications for them, is from 11 January 2016 at 09h00 to 04 March 2016 at 17h00. During this period, completed BTCL IPO application forms, proof of Botswana citizenship, and payment of shares will be accepted by the receiving bank, Barclays Bank of Botswana. Offers WILL NOT be received before or after these dates.

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Engen profit goes up

Koobonye Ramokopelwa

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Engen Botswana, the only listed petroleum company is expecting better results for the six months to June 2018 as a result of favourable trading environment. For the six months period to June 2017, the company made a profit of P55,2 million.

Engen, which supplies petroleum products to retail and institutional clients said, compared to the same period in 2017, profits will be higher on the backdrop of rising international crude oil prices. According to available data, oil prices jumped by 20 percent in the first six months of the year to close at $73 per barrel. Yesterday (Tuesday), oil prices were hovering at $77 per barrel.

The firm, like its peers has also been bolstered by government decision to hike petroleum prices in May. Petrol went up by 23 thebe, 45 thebe for diesel and 38 thebe for paraffin, all per litre. Eric Molale, the minister responsible for petroleum products in the country did not rule out any price increase in the foreseeable future on the backdrop of rising international oil prices.

Local users of petroleum products are not even saved by the fact that the National Petroleum Fund-which cushions customers against increasing oil prices, is fast running dry due to alleged misappropriation by those tasked with maintaining it (the Fund).

Meanwhile, Engen which is headed by Chimweta Moonga has told its shareholders that results will be out before this month ends. “Therefore shareholders are advised to exercise caution when trading in the group securities until such time as a detailed announcement is made,” said a statement from the BSE listed firm.

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Graduates urged to be innovative

Keikantse Lesemela

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Botswana Institute of Chartered Accountants (BICA) President, Verily Molatedi has urged graduates to look beyond job seeking and come up with creative and innovative ways to create employment and contribute to economic development.

This Monday, over 400 students graduated from Imperial School of Business and Science (ISBS) from different fields including business management, Association of Accounting Technicians (AAT), finance and banking, human resource management, tourism and hospitality management and advertising. The ceremony was the first batch of students who completed degree programmes in ISBS.

Speaking during the graduation ceremony, Molatedi said the 21st century is awash with many opportunities and challenges but it is only the optimistic that can rise above and turn challenges into opportunities. “I therefore urge all graduates to acknowledge and take advantage of the government efforts in providing facilities beyond tertiary education and contribute towards economic diversification. To this end some of you may have to be entrepreneurs,” said Molatedi.

Molatedi explained that with over 10 000 graduates annually produced in tertiary institutions, graduates must continually build their skills and think innovatively and create their own brands as this will increase their chances of employability globally.

“Employability is about making sure that you diversify your skills, get knowledge for the industry. It is the key to realizing our economic diversification agenda, and hinges on your availability to be enablers in the country’s present and future economy,” said Molatedi.

Imperial School of Business and Science Director, Nidheesh Sharma said graduates have unique professional identity and a set of values and beliefs that will allow them to continue their quest for lifelong learning and distinguish themselves in their chosen paths as the faculties offered are globally recognized.

“Previously we have had many students completing certificates and diploma programmes but this is the first batch to have completed degree programmes. Graduating annually, young professionals were imparted with the knowledge and skills that are required by the regional and global job market,” said Sharma.

Sharma highlighted that ISBS started in 2003 as a BOTA registered institute and in 2011 it registered with Tertiary Education Council (TEC) and started offering Diploma and Advanced Diploma Programmes. “In 2013, the school re-branded from its old name to current name, ISBS. In 2015, ISBS was awarded best upcoming Institution by HRDC and in 2018 HRDC put us in the top three of Private Colleges,” he said.

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