Botswana’s consumer goods distributor, CA Sales is set to sell some of its shares to the public through an Initial Public Offer (IPO).
This week, the company distributed its prospectus and invitation to the public which details a sale by existing shareholders of the company of shares compromising up to 121 620 240 shares. The prospectus further shows that the company has allowed for a private placement which will be followed by a public offer for subscription of 14 492 754 shares with an intention to raise P50 million.
According to the prospectus, dated 11 October 2017, the IPO was expected to open at 9 am on the 12 October 2017 and set to close on 7th November 2017.
“The company will offer up to 27, 223 599 shares to the public in the IPO, as the balance has been fully subscribed for by institutions already”, reads part of the prospectus.
An announcement of the results of the IPO and final approval by the Botswana Stock Exchange (BSE) is expected to be made a few days before its listing on local bourse in early November 2017. The listing of the CA Sales shares will also see the appointment of former BSE board chairperson Regina Sikalesele-Vaka as well as former managing director at Debswana Mining Company, Blackie Marole as Independent non-executive directors. Both Vaka and Marole have no direct shareholding in CA Sales according to the prospectus.
CA Sales was incorporated in 2011 as a private company in South Africa. The giant consumer goods transportation company is in turn controlled by PSG Group Limited (PSG), a company listed on the securities exchange, operated by the JSE Limited.
CA Sales, one of the largest warehousing and distributors of fast moving goods and commodities in the country says the rationale to sell part of its shareholding is to raise capital for further organic growth and accretive merger and acquisition opportunities.
Before the listing, PSG Africa led the shareholding with 52.8 percent followed by Export Marketing Limited at 36.5 percent whilst Jagdish Shah has 4.8 percent. It is anticipated that after the Placing, IPO and Listing, the majority of issued Shares in CA Sales will still be held by PSG Africa, Export Marketing Limited (10.1%) while asset management firm Kgori Capital, formerly Afena Capital Botswana will have a shareholding of 8.6 percent whilst its counterpart Investec Asset Management Botswana has bought 6.0 percent shareholding.