Afinitas Limited, a homegrown investment company, will float shares in the domestic bourse next month, hot on the heels of a recent successful private placement, BG Business has learnt. This morning (Friday), the company, whose strategy is to invest in the African continent, will embark on a crusade to snap up investors for its Initial Public Offer (IPO). The IPO closes mid-July.
Ahead of the planned listing, the Gaborone-based company has already carried a private placement, which raised P90 million. The BSE aspirant hopes to raise close to P30 million from the IPO for its planned foray into the African market. Once the listing is concluded, the company shares will be open for buying and selling at the BSE on the 27 July 2015. The primary listing, provided it passes listing requirements, will be the first in 2015 for BSE, which is hungry for companies to go public. The process, despite more road shows and convincing to local firms, has been a hard task for the Hiran Mendis-led bourse.
The domestic bourse has in recent months lost Discovery Metals Limited, a company, which owned Boseto copper mine, which is now under the hands of Barclays, backed Cunyan Cupric Capital. Afinitas, an International Financial Services Company, is an investment strategy across diverse industry sectors. In a statement made available to BG Business, the company said it is focused on establishing and developing new businesses across Africa. “The Company seeks to increase shareholder value by providing the seed investment into a number of new companies focused on different strategies or countries within the continent of Africa,” Executive Director, Leutlwetse Tumelo said. The investment firm intends to take advantage of a new interest in Africa as an investment destination, from large institutional investors.
“Afinitas is about the African story. Interest in Africa from European funds is at an all time high, and this is driving the emergence of new investment opportunities within the continent,” said Tumelo. “It is against this backdrop that we created a company which will leverage on Botswana’s IFSC and reputation as an attractive investment destination, to launch into the rest of Africa.” Tumelo, a capital market connoisseur, said Africa has experienced a period of rapid economic growth, which they are ready to exploit. The business climate in Africa is improving, due to a number of factors such as improved telecommunications and better governance in general, he said.
“Less intense business competition than in more developed markets may manifest itself in higher achievable rates of return on equity, than in more developed countries,” Tumelo stated. Application has been made to the Listings Committee of the BSE, which has granted Afinitas a listing of up to 240 000 000 (two hundred and forty million) ordinary shares on the Venture Capital of the Market of the BSE, subject to compliance with the BSE Listings Requirements in respect of number of shareholders, number of shares in issue, and spread. The listing will be on the VCM of the BSE under the abbreviated name “AFINITAS” and share code “AFS”.