• But crazy season has emptied many pockets
It appears more Batswana are interested in buying the Botswana Telecommunications Corporation Limited (BTCL) shares, but are still broke from the festive season. Motswedi Securities stockbroker Garry Juma observed that there was a lot of interest from Batswana to buy these shares, but the problem for now is that they are still broke. “We expect more people to buy these shares after January salaries are credited,” he said.
His comments come at a time when there are general concerns that a number of Batswana may not afford to buy BTCL shares due to various limitations that include bad timing, affordability, and limited period to study the prospectus.
To start with, a decision to release the date of the Initial Public Offering (IPO) was done during the festive season, when Batswana were on holiday, under a very tight budget because of the money consuming season. This could mean that less Batswana during this season have the disposable cash to purchase the BTCL shares. It also means that the information on the IPO did not reach the intended audience in time. However, Juma said as stockbrokers they were receiving lots of inquiries which show that people want to understand the whole thing and even buy. He said once people receive their salaries at the end of the month, they expect a lot of sales to be conducted.
There is no need to rush to submit offers now, as offers are accepted until March 4, 2016.
He also said that at P1.00 each share, it is very affordable. “The rate at which people show interest, we also expect the value to grow quickly which will be very profitable to many people,” he said. Meanwhile, Taazima Kala, Lead Consultant at Hotwire Public Relations Consultancy, told this publication that accessibility and affordability for many Batswana were some of the key factors considered when setting the share price. She added that the price of P1.00 per share and a minimum offer of 1 000 is reflective of that.
“The extensive build-up to the IPO and the extensive offer opening period, which was a special dispensation for the Botswana Stock Exchange of eight weeks, also allows for Batswana to gather funds,” she stressed. On the timing of the sale of the shares which is just after the festive season Kala stressed that not everyone will be able to buy due to various reasons such as payments of school fees, but financial challenges and commitments will always be there and people need to make the right choices when it comes to investments.
Kala also stated that the general public has for some time been aware that this opportunity is coming. When the Minister announced it officially on December 21st 2015, he gave up to March 4th 2016 to buy shares, explained Kala. She indicated that the Nationwide Public Education Roadshow runs throughout the offer period, giving people time to consider all the educational and awareness literature and fully digest the prospectus before making their offers. “There is no need to rush to submit offers now, as offers are accepted until March 4, 2016,” she stated. “We hope that Batswana will explore all their options to raise at least the minimum of P1 000 to buy for themselves and their futures. It is not always easy to raise money but here we implore Batswana to set aside a few purchases that may not be vital to invest in,” she added.