By 
Namibia’s Mobile Telecommunications Limited (MTC) listed on the Namibian Stock Exchange (NSX) on 19 November 2021, after raising about N$2,5 billion at the closure of the initial public offer (IPO).
MTC was expecting to get up to N$3,1 billion from the offering which closed on 1 November, reported the Namibian.
The offer was taken up dominantly by institutional investors, (N$2,4 billion), and retail only brought in N$137,2 million.
Over 299 million of the available 367,5 million shares that were on offer have been taken up, which leaves at least 68,5 million shares no one was interested in.
Namibia Post and Telecommunications Limited (NPTH) will remain the majority shareholder of MTC following the public offer.
Analysts had differing views on how the IPO process played out.
Some said the shortfall was partly due to the current harsh economic conditions in the country, and also because many Namibians are not convinced of the company’s growth potential.
While other analysts say a much longer period would have allowed more participation, Jaco Schoombie an equity analyst at Cirrus Capital said he does not think it would have changed the outcome.
Namibia Asset Managers’ equity analyst Colin Kalimba said the subscription level is in line with expectations.
“Given the large size of the listing on the local bourse and the current investment environment, the fact that it was this well subscribed is a strong vote of confidence and support from the investment community for this business and management team,” said Kalimba.
PSG Namibia’s managing director Brian van Rensburg said, despite the shortfall, the amount subscribed for (N$2,541 billion) is the largest capital raising ever by any Namibian company.
“To put this into perspective, the value subscribed for in previous IPOs was significantly lower and all were done in much better economic times (Standard Bank – N$1,4 billion, Letshego – N$182,3 million and Capricorn Group – N$1,34 billion).
Comments