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Furnishings & DecorCresta Marakanelo, Botswana's largest hotel operator, said on Thursday that it was on track for a June 17 listing on the Botswana Stock Exchange (BSE).
The group noted an "enthusiastic public response" to the sale of 62.9 million shares in the company by Botswana Development Corporation (BDC).
"The private placement of 18.5 million shares, which was taken up by three local institutions, was significantly oversubscribed, and a further 40.7 million shares are being sold by way of an initial public offer (IPO).
"The balance of 3.7 million shares has been earmarked for an employee share trust.
"The offer dilutes BDC's stake in Cresta Marakanelo from 60% to 26%," Cresta Marakanelo said.
The offer closes on June 7. Shares are offered at P1.45 a share, equivalent to a price/earnings multiple of 13, a discount to the BSE's current market average.
"The offer is well priced and we're confident that all the Cresta shares will be taken up," said Grant Molyneaux, corporate finance executive at Imara Botswana, financial advisors to Cresta for the transaction.
"Within four days of the opening of the offer we had to print additional prospectuses to keep up with demand.
"This indicates strong interest from retail investors which will complement institutional demand. It also suggests that the citizen empowerment objectives of the BDC will be realised.
"Strong public participation is good news for local capital market development as the listing will contribute to an improvement in the BSE's liquidity and trading volumes," he said.
The listing of Cresta Marakanelo has received BSE approval, subject to the achievement of a minimum spread of 300 public shareholders.
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