THERE is already a scramble for Mobile Telecommunications Limited shares, as the company is said to already have received an offer for N$2,4 billion from investors before the listing.
According to sources, these investors include the Government Institutions Pension Fund.
This leaves only about N$700 million for ordinary investors, which when divided by the N$8,50 per share will have investors scrambling for 82 million shares. These 82 million shares further divided by the minimum 200 shares that are needed for one to participate, will then equal at least 411 700 shareholders.
Pre-commitment of capital, before a company lists on a stock exchange is not uncommon. Companies that do this are typically private firms, investment managers, and other pension fund institutions willing to buy bigger stakes in the listing company.
Mobile Telecommunications Limited (MTC) maintains that in the event that the public offer is oversubscribed, the company would first allocate shares to previously disadvantaged Namibians, then to MTC staff and customers, followed by Namibian natural persons and corporates, Namibian institutions, the Southern African Development Community, and international investors.
The offer to buy shares opened yesterday, at the cost of N$8,50 per share and a minimum subscription fee of 200 shares, and in multiples of 100 thereafter.
Details about the financial standing and prospects of the company are available via a 300-page prospectus, published in English only. At the offer event in Windhoek on Monday, corporate affairs executive Tim Ekandjo said the executive team will be embarking on a roadshow to further detail the process to people across the country, in all languages.
MTC has been a healthy company financially over the years and declared a dividend of N$977 million to its shareholder, the government in 2020 this is double what was paid in 2019. It has a dividend distribution policy of distributing up to 70% of net profit. The company also had to split its shareholdings thin this year to allow broader ownership.
Analysts are still combing through the prospectus to advise investors and are expected to release notes in the coming weeks. MTC was unable to confirm how many shares were subscribed for on the first day and the market remains in the dark on whether there is indeed an appetite for them or not.
The public offer closes on 1 November. Details on how to buy shares are available on the company's website, at NamPost offices, and at MTC's mobile homes.
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