Stanbic Bank Botswana is offering a 20 per cent stake valued at P1.37 billion ($99.2 million) to investors ahead of its planned listing on the Botswana Stock Exchange, as its parent shareholder seeks to broaden local ownership while retaining control.
The offer involves the sale of up to 319.36 million existing shares at P4.30 ($0.31) each, valuing the bank at approximately P6.87 billion ($497.4 million).
Stanbic Africa Holdings Limited, a wholly owned subsidiary of South Africa’s Standard Bank Group, is selling part of its stake in the Botswana lender but will retain an 80 per cent controlling interest after the transaction.
According to the abridged prospectus published on October 29, 80 per cent of the shares on offer, representing 255.49 million shares, have been reserved for institutional investors through a private placement.
The remaining 63.87 million shares, representing 20 per cent of the offer, will be available to the public.
The institutional portion is valued at approximately P1.10 billion ($79.72 million), while the public offer is worth P274.65 million ($19.9 million).
The prospectus also disclosed that institutional investors had submitted irrevocable undertakings for up to 767.95 million shares, equivalent to 240 per cent of the total shares being offered.
However, final allocations will depend on the outcome of the offer process.
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The public offer opened on October 30 at 09:00 and is scheduled to close on November 27 at 16:30, Botswana time. Results are expected on December 4, while trading is scheduled to begin on December 7, subject to regulatory approvals and listing requirements.
Following the listing, Stanbic Africa Holdings will retain 80 per cent ownership, while institutional investors will hold 16 per cent and public shareholders the remaining four per cent.
To manage the transition, Stanbic Africa Holdings has agreed to lock up 75 per cent of its retained shares from the listing date. Half of the locked-up shares will become available after 12 months, with the remainder released after 24 months.
The transaction will not provide fresh capital to Stanbic Bank Botswana because the shares being sold are existing holdings of Stanbic Africa Holdings. The proceeds will therefore go to the selling shareholder rather than the bank.
Instead, the listing is intended to expand local shareholding, increase domestic investor participation and meet the Botswana Stock Exchange’s public free-float requirements.
Investors seeking to participate must apply for a minimum of 250 shares, with additional applications accepted in multiples of 10. Applications must be fully paid in Botswana pula, and successful applicants are required to have a Central Securities Depository Company of Botswana account.
The prospectus identifies potential investment risks, including economic conditions in Botswana, credit quality, liquidity, cybersecurity threats, regulatory changes and the bank’s franchise agreement with Standard Bank Group.
The listing will give Botswana’s institutional and retail investors an opportunity to acquire shares in an established commercial bank, while allowing Standard Bank Group to sell part of its investment without relinquishing majority control.
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