Thursday, October 6, 2022

African Energy to join BSE, Choppies eyes December listing

African Energy Resources, the Australian listed exploration outfit, will tomorrow lead new listings on the Botswana Stock Exchange before the market closes for Christmas when it joins the BSE foreign venture capital board.

Its listing will likely be followed by Choppies a few days before Christmas after the local chain store operator lodged an application with the exchange.

African Energy move follows on the heels of Firestone Diamonds and Botswana Diamonds, the other two resources companies that joined the exchange this year to make 2011 one of the most active in the market.

The company will list 326, 376, 735 ordinary shares on the Foreign Venture Capital Board of the BSE.

Dudu Garekwe, the BSE Listing and Trading Manager on Friday confirmed African Energy listing, but referred enquiries on Choppies to the company.

Choppies, which owns 49 retail outlets around the country, said this week it has made an application with the exchange in the last couple of weeks, but could not give details on the exercise.

Martin Makgatlhe Chief Executive of Motswedi Securities, the local brokerage firm that has in the past helped companies list on the exchange, said there has been an activity in Choppies’ attempt to list, but did not elaborate.

“There has been a movement in that regard (Choppies BSE listing),” Makgatlhe said. “An application has been made to the BSE.”

Makgatlhe could not give an indication of how much they want to give to the public as 20 percent is the minimum free float that qualifies a company to list.

“We will try to make the company stock attractive,” he said.

However, Sunday Standard is told Choppies wants the opening date for Initial Public Offering (IPO) around November 16 and close the public offer in December 6 to allow the listing to take place on December 15.

Choppies’ listing has been in the pipeline for years as it moves to be a truly Botswana company.

The company Chief Executive Officer, Ram Ottapath, revealed the move will take the company profile to the next level and share its success with Batswana.

Choppies is currently in the private hands and has made successes as it has penetrated the South African market.

On the other hand, African Energy owns Sese Coal Project some 50 kilometers south-west of Francistown and additionally it has high quality uranium projects in both Zambia and Botswana, including the Chirundu project with a 11.1Mlb U3O8 mineral resource.

Meanwhile, BBS could list its initial P2 billion bond programme before the end of the year.

However, the move still has issues as there are questions on the tender process.


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