Saturday, September 26, 2020

BancABC crawls back to BSEL

BY KABELO SEITSHIRO

The listing committee of the Botswana Stock Exchange Limited (BSEL) is reported to have approved an application by the African Banking Corporation Botswana Limited, also known as BancABC Botswana to list its shares on the local bourse. This has been seen one step close towards the arrival of the bank to BSEL corridors after its parent company – African Banking Corporation Holdings (ABCH) delisted its stock from the local bourse just under four years back.

The pull-out of the local stock exchange in early 2015 happened shortly after the group’s former directors Doug Munatsi, Beki Moyo as well as Francis Dzanya sold their shares to the owners of Atlas Mara. Atlas Mara is owned by Bob Diamond, founder of Atlas Merchant Capital LLC and Ashish Thakkar, founder of Mara Group Holdings Limited. The company was listed on the main market of the London Stock Exchange in December, 2013.

While he confirms the desire to list, Kgotso Bannalotlhe ÔÇô BancABC Managing Director says the application and subsequent approval for the listing of BancABC Botswana shares on the main board of BSEL is one part of the requirements in the process of listing on the exchange and does not constitute a final offer to sell shares nor list on the exchange.

“As announced by the Botswana Stock Exchange on the 01 November 2018, the company has received approval to list. The approval received from the BSE is for the listing of African Banking Corporation Botswana Limited only,” says Bannalotlhe.

Bannalotlhe says there are a number of reasons that made the fourth ranked bank to consider listing shares of the local unit at BSEL which he said include the need to attract important stakeholders in the country.

These stakeholders, Bannalotlhe says, if attracted will serve the long-term interest of the ABCH Group.

Another motive, he says it to enable the company to attain greater access to efficient capital markets in raising local funding to support future growth plans.

BancABC Botswana is ranked as the fourth most profitable bank in the country and 5th in terms of balance sheet.

As such, Bannalotlhe says BancABC Botswana’s goal is to bolster its market position and become the bank of choice for individuals, corporates, and public sector entities in Botswana by offering differentiated services through investment in technologically advanced interaction platforms.  He added that the bank and the Bank’s parent Groups ÔÇô ABC Holdings and Atlas Mara have been making, and intends to further make, investments geared towards achieving this goal.

Meanwhile Bannalotlhe says due to regulatory requirements the bank is unable to provide information relating to the listing time frame.

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