Cresta Marakanelo Limited, the hotel and tourism group earmarked to be the icon of Botswana Development Corporation’s ( BDC’s), pushed back closing dates for its Initial Public Offer (IPO) to extend limelight as the driver of the citizen economic empowerment initiative.
Brokers said Friday morning that they were being “excitedly overwhelmed” by interests expressed by punters towards the giant hotel and tourism outfit ahead of statement indicating growing demand for its prospectus by retail investors.
The company is planning to list 62.9 million shares at P 1.45 thebe a piece ÔÇô being stake held by BDC ÔÇô to try to support the citizen empowerment initiatives.
“There has been an overwhelming demand of Prospectus from the Public, in particular individual applicants. As a result (in consultation with the BSE) the dates of the closing of the Public Offer and the subsequent listing of Cresta have been extended…,” the company said in a statement that was sent out on Friday through its sponsoring brokers, Stockbrokers Botswana .
The closing date has been pushed back to June 14 with the actual listing now fixed for June 28. And the company has enlisted the services of Barclays branches to deal with the rising demands for its prospectus.
The move is expected to leave BDC with utmost 26 percent shares in the company while TA BotswanaÔÇöthe strategic partnerÔÇöat 40 percent while the rest in the hands of other shareholders participating through the Botswana Stock Exchange.
The new development which in total will see 62.9 million shares on offer through the BSE.
And out of that 18.5 million shares will go to the market through private placement, 40.7 million shares will be sold through public offer while the remaining 3.7 million shares or two percent of the company will be bought by the company on behalf of its employees.
The move is part of the BDC’s strategic plan, among other things, would like to see giant government’s investment arm reducing its involvement in projects that are established such as Cresta Marakanelo and its property wing as it is planning to drive them to the BSE to ensure that as many Batswana take stake either through insurance, pension funds or they do directly invest.
Cresta Marakanelo was founded in 1974 and then was known as BDC Hotel Management is currently one of the leading hotel brands in the country and operates eight hotels.
The hotels are: Cresta Lodge, President Hotel, Botsalo Hotel, Bosele Hotel, Marang Gardens and Hotel, President Hotel, Riley’s Hotel , and Cresta Mowana Safari Lodge.
In total, the company has 724 beds in Botswana.
“Over the last eleven years, the company has expanded and is now recognized as a leading brand in Botswana.
“Last year Cresta underwent a re-branding exercise whereby hotels within the portfolio are categorized into four separate gateways which are defined by the products offering of each Cresta hotels,” the company said.
Cresta Marakanelo will be the third tourism outfit to list on BSE following Chobe Holdings and Wilderness Safaris. Wilderness Safaris has a secondary listing on the Johannesburg Securities Exchange.